Companies looking to reward and motivate their employees with incentive awards need to focus on the total reward experience—which frequently doesn’t involve cash, according to a new study commissioned by the Incentive Marketing Association (IMA).
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“The Participant Study,” which was conducted by the Incentive Research Federation (IRF) through Intellective Group for IMA, surveyed 452 people about more than 80 noncash award types to determine their preferred kinds of travel, merchandise, gift card incentives, and perks. The data collected revealed each participant’s most and least desired total reward experience.
Total award experience is key—and every employee is different
The study found that the total award experience matters: Between 40% and 70% of a participant’s preferred award experience was determined by nonaward presentation factors, such as who gives the award, how it’s communicated, and what professional impact it carries.
Additionally, there is no “one size fits all” when it comes to preferences in this area. Of the 452 study participants, 448—nearly all of them, in other words—had unique award profiles in terms of preferred award, presentation/ceremonial aspects, potential for professional development and advancement, and other preferences. In all, the study participants personally valued and weighed more than 110 different aspects of the total award experience.
When the presentation is right, cash matters less
For large rewards, such as annual sales program recognition, the study found that when participants were rewarded by the right level of management, with the right communication and professional development, 80% preferred incentive travel and experiences in that scenario—not cash.
For smaller awards, such as short term and spot recognition programs, the study found that when participants were rewarded by the right level of management, and with the right communication and professional development potential, about 66% of participants preferred a personally meaningful noncash reward over cash.
“A key lesson for businesses from this study is that every type of reward—merchandise, gift cards, and travel—all outperform cash, and that assuring a positive and personal total reward experience has a major impact on participant motivation and behavior, which ultimately affects employee performance and talent retention,” says IMA Executive Director Donna Chrobak.