With all number of bonus schemes set up across the country I wonder, does anyone ever stop and measure the effectiveness of cash bonuses within their organisation? With greater value for money on offer through non-cash rewards do they really incentivise staff to perform in equal measure to their cash counterparts?

http://www.johnsylvester.co.uk/what-are-cash-rewards-really-spent-on/?utm_source=rss&utm_medium=rss&utm_campaign=what-are-cash-rewards-really-spent-on

A number of studies have been conducted over recent years throughout a variety of American industry sectors that offer some hard facts and figures on the subject. Each time the results came back, non-cash incentives and rewards demonstrated a greater return on investment than their cash alternative, so I thought I’d share these findings with you…

 A study conducted for the Goodyear Tire & Rubber Company demonstrated that while the performance of a group of participants rewarded with cash and another group rewarded with tangible incentives improved during the programme, the increase shown by those receiving tangible rewards was nearly 50% more than those of the other group.

The results of a survey conducted by Wirthlin Worldwide of 1,010 people who were asked how they spent their last cash reward, cash incentive or cash bonus highlighted the limited impact of cash incentives:

In a survey conducted by AEIS, 17% of the American employees polled said they had received a year-end cash bonus. A full 32% of these respondents admitted that the cash bonus did not improve their work performance.

A recent Incentive Federation survey found that on average, 79% of respondents found non-cash reward programs to be fairly to extremely effective in motivating participants to achieve sales and marketing goals.

According to a study by the International Society of Performance Improvement called “Incentives, Motivation and Workplace Performance: Research and Best Practices,” incentive programmes that are implemented and tracked correctly, in addition to offering tangible awards increase performance by an average of 22%. Team incentives increase performance by as much as 44%.

So is now the time to rethink what you’re doing to drive performance in your organisation?

http://www.johnsylvester.co.uk/what-are-cash-rewards-really-spent-on/?utm_source=rss&utm_medium=rss&utm_campaign=what-are-cash-rewards-really-spent-on

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