So maybe the budget’s a little thin for rewarding even the most deserving employees. All the more reason to make sure you get the most out of any incentives you do hand out.
Recent research by Visa and MasterCard shows in certain situations, there are better ways to get the results your company wants from its people.
Of particular interest: What works best, cash or noncash incentives?
The answer from the research: It depends, as reported in the publication “CFO and Controller Alert.”
If you’re trying to reward people for an overall “job well done,” use any cash that’s available. Overall performance issues are what salary increases and bonuses are for. That’s for the longer-term wins.
If you want to reward a specific behavior or achievement, go for noncash recognition. Handing an employee $50 for a superior safety track record, form instance, probably won’t encourage anyone to keep it up.
That’s because people tend to use cash for bills and other household expenses, and then the money’s gone and forgotten.
But an iPod shuffle, for example, costs the same amount and is a constant reminder to keep that protective equipment on, along with the bragging rights that go with a tangible, long-lasting gift.
Just remind your Payroll department: Any cash reward – or one with a clear cash equivalent, like gift cards – is taxable to the employee.
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