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.
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- 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.
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- 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.
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