Money is important to everyone, but studies have shown that employees find personal recognition to be more of a motivator than money.
One problem with cash is that often employees simply use the money to pay bills, everyday necessities and forget the reason for getting it.
Cash incentives also quickly become confused with salary and bonuses, so they can become yet another yearly expectation.
A study has shown that it takes 5 to 8 percent of an employee’s salary to change behavior if the reward is cash and approximately 4 percent if the reward is not money.
If you want to your recognition program to have a lasting effect, then cash is simply not the answer.
