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 Merchandise vs. Cash 
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Merchandise vs. Cash

Arguments for Non-Cash Incentives
Business Reasons Financial Reasons Psychological Reasons
  • Targeted at people rather than product or service.

  • Transposes corporate objectives into personal objectives.

  • Isolates objectives rather than gross sales.

  • Captures discretionary dollars, time, and energy.

  • Improves communications ... incentive messages are read!

  • Strong residual benefits for both sponsor and participant.

  • Brings executives and their best customers together in an ideal environment.

  • Strengthens loyalty to company.

  • Exciting ... highly promotable.

  • Reduces risk ... variable cost related to results.

  • Incremental funding possible ... pay only on sales or results over plan.

  • Not precedent setting, not considered income.

  • Allows for co-funding.

  • Protects basic pricing strategy.

  • Positive cash flow, impact precedes changes.

  • Value of float and breakage to client.

  • Tax advantages, in some cases, to both sponsor and participants.

  • Doesn't 'disappear' into participant's wallet.

  • Reinforces desired behaviors.

  • Satisfies the need for psychic income.

  • Motivates people beyond their comfort level.

  • Motivates both the high achievers and those working below their potential.

  • Encourages goal setting.

  • Increases progress awareness.

  • Allows recognition by peers ... can be talked about and promoted.

  • Singular award, no options, can't be divided.

  • Membership in elite group.

  • Has no guilt association.

  • Involves family.