Merchandise vs. Cash
Arguments for Non-Cash Incentives
| Business Reasons |
Financial Reasons |
Psychological Reasons |
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Targeted at people rather than product or service.
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Transposes corporate objectives into personal objectives.
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Isolates objectives rather than gross sales.
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Captures discretionary dollars, time, and energy.
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Improves communications ... incentive messages are read!
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Strong residual benefits for both sponsor and participant.
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Brings executives and their best customers together in an ideal environment.
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Strengthens loyalty to company.
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Exciting ... highly promotable.
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Reduces risk ... variable cost related to results.
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Incremental funding possible ... pay only on sales or results over plan.
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Not precedent setting, not considered income.
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Allows for co-funding.
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Protects basic pricing strategy.
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Positive cash flow, impact precedes changes.
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Value of float and breakage to client.
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Tax advantages, in some cases, to both sponsor and participants.
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Doesn't 'disappear' into participant's wallet.
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Reinforces desired behaviors.
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Satisfies the need for psychic income.
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Motivates people beyond their comfort level.
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Motivates both the high achievers and those working below their potential.
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Encourages goal setting.
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Increases progress awareness.
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Allows recognition by peers ... can be talked about and promoted.
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Singular award, no options, can't be divided.
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Membership in elite group.
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Has no guilt association.
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Involves family.
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