DON'T Show Me The Money!

Want better performance?  Want better employee loyalty?  Don't show employees the money!  Really!

People in my industry have long argued that cash incentives are not as effective as a tangible incentive (i.e. promotional product).  We argued (and correctly I believe) that cash incentives and rewards often end up getting spent on groceries, gas and other mundane items that don't provide lasting value to the team.  The tangible incentive is something that lasts for the employee (or sales member or customer or...) after the event as a reminder of the good deed...and the company that gave it to them.

All true.

But this article shows it from the employee perspective.  The fact is, when given the choice between cash and a hypothetical tangible item, the cash wins.  Employees will tell you that is what they would prefer most of the time.  There is the challenge of the promotional industries argument.  Companies would say "But my employees would just rather have cash." 

To quote Lee Corso, "Not so Fast!"

Here's the piece we sometimes miss.  When given the choice between cash and a specific tangible incentive, the employees will choose the item!  The basic psychology is they need to be able to visualize the incentive to make it real.  The best part is, they will work harder to get it as well.

So the lesson is this, if you want to create an incentive that will motivate behaviors, let them know exactly what they items or incentives will be.  That will give you the most bang for your promotional buck!