Research paper
Rewards and Recognition
HR Perspectives on Non-Cash Rewards and Recognition in the New Economy
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Research paper
HR Perspectives on Non-Cash Rewards and Recognition in the New Economy Rewards and Recognition
Introduction
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It is no secret that the great recession has resulted in a significantly different structure in the corporate landscape. The economy has led to many organizations with stalled partnerships, smaller footprints, and jagged growth curves. On the inside, rapidly changing corporate directives, fewer resources, and a smaller workforce challenge most corporate initiatives. This environment raises a number of questions from an HR perspective. Has the HR motivation toolbox changed? And if so, to what extent do non-cash rewards and recognition fit in to this tool box? Recent studies by McKinsey, Aberdeen and others seem to indicate an increasing focus from executive and sales management on non-cash rewards and recognition. McKinsey’s recent report Motivating People; Getting Beyond Money openly challenges the traditional thinking of cash as the end all motivator. The report finds strongly in favor of non-cash motivators (including praise from immediate managers), and lists these motivators as being more effective than the three highest-rated financial incentives (i.e., cash bonuses, increased base pay, and stock options).1 Likewise, Aberdeen research found that Best-in-Class companies (i.e. those with the highest financial and operational results) were more than twice as likely as all other firms to provide non cash incentives, with 21% of Best-in-Class organizations highly utilizing them versus 10% of all other companies.2 The effectiveness of various non-cash reward and recognition strategies from an HR perspective, the structure of the programs and corporate support thereof was the subject of a 2012 survey by HR.com targeted at HR owners of non-cash reward and recognition programs. High Level Findings: • Although non-cash reward and recognition programs are frequently sponsored at the corporate level and the HR function is the primary champion of all-employee programs, HR has been slow to become the true corporate-wide strategic partner for non-cash rewards. HR respondents reported that they only represent 50 to 80% of the overall non-cash R&R spend. • Sourcing for non-cash rewards remains broad-based, with organizations partnering across many types of providers and intermediaries. Promotional product companies, recognition companies, incentive companies, and retail stores remain the go-to sources for non-cash awards. • Print communications, websites, and in-house administrators are the primary means of program support and awareness. • The perceived effectiveness of various non-cash motivators changes depending on the organizational goal (engagement, sales, productivity). • Cost/Benefit Information was the most often cited information that could help “sell” reward and recognition internally.
1 https://www.mckinseyquarterly.com/Motivating_people_Getting_beyond_money_2460 2 http://theirf.org/research/content/6085642/rewards-and-recognition-as-a-vital-compensation-component/
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HR Perspectives on Non-Cash Rewards and Recognition in the Newand Economy 2. Methodology Sample Population Rewards and Methodology and Sample Population Recognition The study was fielded
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The was fielded spring of 2012 to theResponses majority of HR.com electronically instudy the spring of electronically in theDiagram 1: 251 with members Planning and received 603 responses, giving it a 99% confidence level with a +/-5% confidence interval. 2012 to the majority of HR.com Responsibility members and received Diagram 1:603 251 Responses with Planning Responsibility Travel Only responses, giving it a 99% Travel + R&R 1% confidence level with a +/-5% 20% confidence interval.
Of these 603 respondents, approximately 67% had formal non-cash reward and recognition programs or incentive travel R&R Only programs. Of the 401 79% respondents with programs, 251 had either direct or indirect planning duties in either the non-cash reward and recognition programs or Of these 603 respondents, approximately 67% had formal non-cash reward and recognition incentive travel programs. Duetravel to the limited Of number travel-related program 251 owner programs or incentive programs. the 401ofrespondents with programs, had responses, either limited conclusions incentive travel could be extracted fromreward the data. data does however direct or on indirect planning duties in either the non-cash and The recognition programs or incentive travel programs. Due to the limited number of travel-related program owner support the commonly held understanding that the HR function has a limited role in the planning and responses, limited conclusions on incentive travel could be extracted from the data. The data use of incentive travel in most organizations. The sample population was also a broad, general does however support the commonly held understanding that the HR function has a limited role reflection ofinthe both andtravel organizational size. themarket planninginand useindustry of incentive in most organizations. The sample population was also a broad, general reflection of the market in both industry and organizational size.
Diagram 2: Respondents by Industry
Diagram 2: Respondents by Industry Hospitality 2%
Media and Entertain. Travel 2% 1% Other 12%
Ag/Mining 2%
Services 15%
Construction 4%
Manufacturing 13%
Education 7% Transportation 2%

NonProfit 7%
Finance 8% Gov't 8%
Health 8%
Wholesale 1% www.hr.com | 1-877-472-6648
Telecom 5%
Retail 3%
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Non-Cash Rewards and Recognition in the New Economy: An HR Perspective
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Research paper
Rewards and Recognition
HR Perspectives on Non-Cash Rewards and Recognition Diagram 3: % of Respondents by Employer in the New Economy Size Diagram 3: % of Respondents by Employer Size
13% 7%
8%
1 to 19 employees 20 to 99 employees
18%
100 to 499 employees
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500 to 999 employees 18%
1000 to 4999 employees 5000 to 9999 employees 11%
25%
10,000+
Benchmarking the Sponsorship of Non-Cash Reward and Recognition Programs
As the landscape for ownership of many organizational initiatives has changed in the last five to eight years, one of the focal points of the study was to understand and benchmark where sponsorship for non-cash reward and recognition programs resonates in the new economy. 3. Benchmarking the Sponsorship of 4Non-Cash Reward As Diagram reveals, non-cash reward and and recognition programs receive a surprisingly large amount of sponsorship at the corporate level with 73% of respondents noting that their nonRecognition Programs cash reward and recognition programs have corporate sponsorship. This is a notable change to the primarily dispersed and divisional reward programs prevalent in the 1990’s. It also reflects As the landscape for ownership of the consolidated decision-making and efficiency efforts of many modern organizations. many organizational initiatives has changed in the last five to eight years, one of the focal points of the study Diagram 4: At What Level Are Non-Cash R&R Programs Sponsored was to understand and benchmark where sponsorship for non-cash 73% reward and recognition programs 39% 36% resonates in the new economy. As Diagram 4 reveals, non-cash reward and recognition programs receive a surprisingly large amount of Corporate Division Department sponsorship at the corporate level with 73% of respondents noting that their non-cash reward and Additionally, as Diagram 5 shows, the HR organization does continue to play a significant and recognition programs have corporate sponsorship. This is a notable change to the primarily dispersed predominant role in the organization and sponsorship of non-cash reward and recognition and divisional reward programs prevalent programs in the 1990’s. also88% reflects the consolidated decisionwith Itover of respondents revealing that the HR department is one of the key making and efficiency efforts of many modern organizations. budgetary sponsors and organizers of reward and recognition programs. Less than 20% of
Diagram 4: At What Level Are Non-Cash R&R Programs Sponsored?
t
t
respondents reported having non-cash reward and recognition programs also sponsored in the Additionally, as Diagram 5 shows, the sales and marketing departments. HR organization does continue to play Diagram 5: HR Department is a significant and predominant role in Key Sponsor the organization and sponsorship of Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 3 non-cash reward and recognition www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 programs with over 88% of 88% 14% 16% 6% respondents revealing that the HR 1% 4 1% department is one of the key budgetary sponsors and organizers of
sh reward and programs have corporate sponsorship. This is a notable change to the primarily dispersed al reward programs prevalent inResearch the 1990’s.paper It also reflects the consolidated decisionefficiency efforts of many modern organizations.
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HR Perspectives on Non-Cash Rewards and Recognition Diagram HR Department is in the New 5: Economy
Key Sponsor
Diagram 5: HR Department is Key Sponsor
1%
Do n' t
kn ow
1%
De pt
pt
6%
Tr av el
De ti n gs
tin
gD ep
t
16%
M ee
ep t sD
14%
M ar ke
Sa le
De pt
88%
HR
, as Diagram 5 shows, the tion does continue to play and predominant role in Rewards and tion and sponsorship of Recognition ward and recognition th over 88% of revealing that the HR is one of the key ponsors and organizers of recognition programs. % of respondents ving non-cash reward and programs also sponsored and marketing s.
Benchmarking Resources for Non-Cash Reward and Recognition Programs: Budget and Support
At a time when US organizations are sitting on an estimated $1.6 trillion worth of capital reserves, it would not be surprising to find that non-cash reward and recognition programs have been slowly drained of budgetary and support resources. According to respondents however, as seen in Diagram 6, this has not happened. Ranges in terms of budget size varied from $50,000 to over $5 million. Not surprisingly however, the size of the budget varied by the size of the organization, with 100% of organization with less than 20 employees reporting a $50,000 or smaller budget and larger organizations claiming the larger annual expenditures. -Cash Rewards and Recognition in the New Economy: An HRwas Perspective 4 More interesting however, that although respondents were program decision makers, the majority of them identified that the budget amount they listed only represented between 50% and 80% of their estimate of the corporation’s actual overall spend. (Table 1) This could speak either to the wide amount of individual spending that happens at various levels of management or to the unknown amounts represented in the sales and marketing divisions discussed above. It is, however, another indicator that HR still may have more ground to cover in becoming the primary strategic partner for all reward and recognition initiatives.
marking Resources for Non-Cash Reward and Recognition ms: Budget and Support
US organizations are Diagram 6: Expenditure on Non-Cash R&R Diagram 6: Expenditure on Non-Cash R&R timated $1.6 trillion reserves, it would not 17% < $50,000 2% find that non-cash $50,001 + 0% ognition programs have $100,001 + 0% $250,001+ ined of budgetary and 3% $500,001 + 48% 2% ces. According to $1,000,001 + 3% $2,000,001 + wever, as seen in $3,000,001 + has not happened. 5% $4,000,001 + s of budget size varied > $5,000,000 Don't know 8% o over $5 million. Not wever, the size of the 12% y the size of the ith a 100% of organization with less than 20 employees reporting a $50,000 or smaller er organizations claiming the larger annual expenditures. More interesting however, www.hr.com | 1-877-472-6648 gh respondents were program decision makers, the majority of them identified that the they listed only represented between 50% and 80% of their estimate of the ctual overall spend. (Table 1) This could speak either to the wide amount of individual
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Research paper
HR Perspectives on Non-Cash Rewards and Recognition in the New Economy
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Rewards and Recognition
Table 1 Budget Size: Percent of Respondents by Organization Size that Reported the According Size of Organization
<$50k
$50k+
$100k+
$250k+
$500k+
$1MM+
$2MM+
$4MM+
$5MM+
1-19 Employees
100%
0%
0%
0%
0%
0%
0%
0%
0%
20-99 Employees
77%
6%
3%
3%
0%
0%
3%
0%
0%
100-499 Employees
58%
14%
11%
1%
3%
1%
0%
0%
0%
500-999 Employees
44%
17%
3%
8%
3%
3%
0%
0%
0%
1,000-4999 Employees
40%
13%
13%
9%
4%
0%
4%
0%
0%
5,000-9999 Employees
18%
18%
24%
6%
0%
6%
6%
0%
6%
10,0000+ Employees
8%
5%
3%
8%
8%
5%
11%
3%
11%
Although the HR respondents acknowledged that their program spend represented only a portion of the overall R&R outlay, they were also unified that their budgets go primarily to non-sales employee recognition and rewards. When asked, “What percent of your overall noncash reward and recognition expenditure goes for the following program types?”, an average of 67% of the spend went to non-sales employee recognition rewards, 18% went to sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once again, these numbers most likely represent the focal point of HR responsibilities versus the spend that occurs in the sales or marketing organization for sales and channel programs. Also of important note is that these budgetary resources are used not only for rewards, but also for a variety of other program elements. Sixty percent of respondents reported that their organization supports non-cash reward and recognition programs with print communications, 40% reported supporting their programs with a program website, and nearly 40% support their programs with dedicated in-house administrators. Mobile applications and outside administrative support were used by less than 10% of respondents.
$5 M M +
$4 M M +
$2 M M +
$1 M M +
$1 00 ,0 01 + $2 50 ,0 01 + $5 00 ,0 01 + Do no tk no w
0
<$ 50 ,0 0
$5 0, 00 1+
Although the HR respondents Diagram 7: % of Budget Represented cknowledged that their program Smaller Budgets Represent Portionof Overall Spend Diagram 7: Smaller Budgets RepresentSmaller Smaller Portion pend represented only a portion of Overall Spend of the overall R&R outlay, they were also unified that their 100 budgets go primarily to non-sales 90 80 employee recognition and 70 ewards. When asked, “What 60 50 percent of your overall non-cash 40 30 eward and recognition 20 expenditure goes for the 10 0 ollowing program types?”, an verage of 67% of the spend went o non-sales employee ecognition rewards, 18% went o sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once gain, these numbers most likely represent the focal point of HR responsibilities versus the spend that occurs in the sales or marketing organization for sales and channel programs. Also of important note is hat these budgetary resources are used not only for rewards, but for a variety of other program www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 elements. Sixty percent of espondents reported that their 6 Diagram 8: Methods Used to Support organization supports non-cash
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recognition rewards, 18% went to sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once again, these numbers most likely represent the focal point of HR responsibilities versus the spend that Research paper occurs in the sales or marketing organization for sales and channel programs. Also of important note is that these budgetary resources are used not only for rewards, but for a variety of other program elements. Sixty percent of HR Perspectives on Non-Cash Rewards and Recognition respondents reported that their in theDiagram New Economy 8: Methods Used to Support organization supports non-cash Rewards and reward and recognition Diagram 8: Methods UsedPrograms to Support Programs Recognition programs with print Other communications, 40% reported Outs i de Admi ni s tra ti ve Support supporting their programs with Dedi ca ted In-Hous e Admi ni s tra tors a program website, and nearly Mobi l e Appl i ca ti on for Progra m 40% support their programs Integra ti on wi th Soci a l Medi a with dedicated in-house Progra m Tra i ni ng administrators. Mobile Progra m Webs i te applications and outside Pri nt Communi ca ti ons administrative support were 0% 10% 20% 30% 40% 50% 60% 70% used by less than 10% of respondents.
Effectiveness of Non-Cash Motivators Varies by Organizational Goal
With resources, both budgetary and administrative, relatively scarce over the last few years, many organizations have taken the opportunity to re-evaluate the effectiveness of various tools and recalibrate where needed. The same can be said of non-cash reward and recognition programs. As Diagram 9-11 show, when asked how effective various non-cash reward and recognition tools were in increasing engagement, sales, and productivity within the modern organization, the HR perspective varied markedly in both magnitude and in type depending on the target population.
5. Effectiveness of Non-Cash Motivators Varies by Organizational Goal
s
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it e m
s
en
To k
l
tc ar d
De bi
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rT
Gi ft
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rd s
fo
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gib l
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ca rd
In ta n
M er ch an
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With resources, both Rewards and Recognition in the9:New Economy:R&R An HR Perspective in 6 Diagram Non-Cash Effectiveness budgetaryNon-Cash and administrative, relatively scarce over the last Increasing Engagementin Increasing Engagement Diagram 9: Non-Cash R&R Effectiveness few years, many 70% organizations have taken the 60% opportunity to re-evaluate 50% the effectiveness of various 40% tools and recalibrate where 30% Extremely effective needed. The same can be 20% Effective 10% said of non-cash reward and 0% recognition programs. As Diagram 9-11 show, when asked how effective various non-cash reward and recognition tools were in As seen inwithin Diagram HR owners of non-cashthe reward and recognition programs were very increasing engagement, sales, and productivity the9,modern organization, HR perspective positive about the role non-cash awards play in elevating engagement within their organizations. varied markedly in both magnitude and in type depending on the target population.
Almost 70% reported that in their experience Gift Cards for merchandise were either extremely effective reward or effective increasing engagement within theirpositive organizations. As seen in Diagram 9, HR owners of non-cash andatrecognition programs were very about Just over 60% of respondents reported that intangibles such as time off, reserved parking spaces, etc. were in the role non-cash awards play in elevating engagement within their organizations. Almost 70% reported their experience either effective or highly effective in increasing engagement. Nearly half felt that in their experience Gift Cards for merchandise were extremely effective at found debit cards, token that merchandise waseither effective or highlyeffective effective. or Less than a third items or travel effective extremely effective at increasing increasing engagement within their organizations. Just overor60% of respondents reported engagement. that
intangibles such as time off, reserved parking spaces, etc. were in their experience either effective or highly effective in increasing engagement. Nearly
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Diagram 10: More than Half Feel Intangibles Effective At Increasing
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M er ch an dis In e Gi ta ft n Ca gib rd le sf s Gi or ft M Ca er rd ch sf or Tr av el De bi tc ar ds To ke ni te m s Tr av el
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n in Diagram 9, HR owners of non-cash reward and recognition programs were very positive about e non-cash awards play in elevating engagement Research paper within their organizations. Almost 70% reported their experience Gift Cards for merchandise were either extremely effective or effective at ing engagement within their organizations. Just over 60% of respondents reported that bles such as time off, HR Perspectives on Non-Cash Rewards and Recognition ed parking spaces, etc. in the New Economy Diagram 10: More than Half Feel n their experience either Rewards and ve or highly effective in Diagram 10: More Effective than Half Feel Effective At Increasing Intangibles AtIntangibles Increasing Recognition Productivity ing engagement. Nearly Productivity t that merchandise was ve or highly effective. 60% an a third found debit 40% token items or travel 20% ve or extremely effective Extremely effective 0% easing engagement. Effective
ram 10, the effectiveness e tools changed when us was productivityhalf felt that intangibles were highly effective at increasing productivity and close to half felt the same engagement. Moreregarding than In Diagram 10, the effectiveness of these tools changed when the focus was productivity versus gift cards. engagement. More than half felt that intangibles were highly effective at increasing productivity andperceived close to halfeffectiveness felt the same regarding giftnon-cash cards. Lastly, the scale and of various motivators shifted again when the
Non-Cash Rewards and Recognition themotivating New Economy: HR Perspective organizational focusinwas sales. An Overall, HR program owners7 felt that gift cards for
Lastly, the scale and perceived effectiveness of various non-cash motivators shifted again
merchandise, intangibles travel werefocus the was mostmotivating effectivesales. non-cash motivators for owners increasing sales. when theand organizational Overall, HR program felt that cards for30 merchandise, intangibles and travel were the don’t most effective non-cashthese motivators Of important note,gift between and 50% of respondents stated they know whether tools are for increasing sales. Of important note, between 30 and 50% of respondents stated they effective with sales, or that it is not applicable to their organization. This seems to reiterate that HR don’t know whether these tools are effective with sales, or that it is not applicable to their could be a more effective partner their organizations if they thepartner implications of nonorganization. This within seems to reiterate that HR could be aunderstood more effective within their cash reward and recognition multiple populations and goals.of non-cash reward and recognition for organizationsfor if they understood the implications multiple populations and goals. 
Diagram 11: Intangibles and Gift Cards seen as Diagram 11: Intangibles and Gift Cards seen as Most Effective for Motivation SALES Most Effective for Motivation SALES
Extremely effective
sf
Gi ft
ca rd
In ta n
gib l
es or M Ca er rd ch sf or t ra ve De l bi tc ar ds To ke ni te m s Tr av el
Effective
Gi ft
M er ch an
dis e
35% 30% 25% 20% 15% 10% 5% 0%
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6. Sourcing Non-Cash Reward and Recognition Tools
Ot he r
Ot he r
Co
Co
In c
en tiv rp e Co .T m ra pa ve l A ny Re ge co nc gn y iti on Re Co ta . il S Di to re re ct tra ve l In Di te re r ct A d ne t fro Ag m en m cy an uf a.. Pr om . M a op il o ro rd du er ct sD is. ..
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In c
en tiv rp e Co .T m ra pa ve l A ny Re ge co nc gn y iti on Re Co ta . il S Di to re re ct tra ve l In Di te re rn ct et Ad fro Ag m en m cy an uf a.. Pr om . M a op il o ro rd du er ct sD is. ..
The last several years have also HR Perspectives on Non-Cash Rewards and Recognition brought a very strong push by many in the New Economy Diagram 12: Gift Cards Sourced from larger organizations to consolidate Rewards and Retail Stores, Co,Tools Incentive Co, spending and sourcing decisions Sourcing Non-Cash Reward andRecognition Recognition Recognition and Internet primarily through the procurement The last several years have also brought a very strong push by many larger organizations to department. Such efforts certainly consolidate spending and sourcing decisions primarily the35% procurement department. 25% 20%through 5% 20%to10% Such efforts pressure certainly prove to place downward pressure on prices, but can5% also lead a change prove to place downward 13% 7% 14% 9% in the landscape of successful provider partners. When asked from where various non-cash on prices, but can also lead to a resources were sourced, the answer was dispersed and dependent on the award type. In the change in the landscape of of respondents had sourced gift cards for their programs from retail stores, last year, 35% 25%partners. had purchased them through recognition companies, and a fifth had used an incentive successful provider When cing Non-Cash Reward and Tools13 shows, respondent’s sourced merchandise for noncompanyRecognition or the Internet. As Diagram asked from where various non-cash cash reward and recognition programs from arguably different sources. In the last year, almost resources were sourced, the answer a third of respondents had purchased merchandise from a promotional products organization, veral years have also over a quarter had used was dispersed and dependent on a recognition company, over 20% had used a retail store, and a fifth very strong push by many had once again used an incentive company. Diagram the award type. In the last year,12: Gift Cards Sourced from nizations to consolidate Retail Stores, Recognition Co,Retail Incentive Co, 35% of respondents had sourced Diagram 12: Gift Cards Sourced from Stores, Recognition Co, Incentive nd sourcing decisions Co, and Internet gift cards for their programs from and Internet hrough the procurement retail stores, 25% had purchased them through recognition companies, and a fifth had used an incentive nt. Such efforts certainly 25% 35% 20% 5% 13 shows, company or the internet. As Diagram sourced merchandise for non-cash reward 20% 10% ace downward pressure 5%respondent’s 13% 14% 7% year, and almost a third of 9% but can also lead to a recognition programs from arguably different sources. In the last he landscape of respondents had purchased merchandise from a promotional products organization, over a quarter had a recognition company, over 20% had used a retail store, and a fifth had once again used an provider partners.used When incentive company. m where various non-cash
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were sourced, the answer sed and dependent on Diagram 13: Merchandise Sourced Mainly type. In the last year, from Promo Dist, Recognition Co, pondents had sourced Diagram 13: Merchandise Sourced Mainly from Promo Dist, Recognition Co, or their programs from Incentive Co, and Retail StoreCo, and Retail Store Incentive s, 25% had purchased them through recognition companies, and a fifth had used an incentive r the internet. As Diagram 13 shows, respondent’s sourced merchandise for non-cash reward 30% 28% 22% nition programs from arguably different sources. In the last year, almost a third of 20% 17% 19% 16% ts had purchased merchandise from a promotional products organization, over a quarter had 10% 6% 3% 3% ognition company, over 20% had used a retail store, and a fifth had once again used an ompany.
In c
Diagram 13: Merchandise Sourced Mainly from Promo Dist, Recognition Co, Incentive Co, and Retail Store
Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 28% 20% 3%
9
30% 22%
19% 3%
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16%
17%
10%
6%
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7. Turning the Tide: A View In To “Making the Case” As noted in the first part of the paper, a third of respondents reported not having a known non-cash HR Perspectives on Non-Cash Rewards and Recognition reward and recognition program within their organization. These respondents offer an important view in ofthe New rewards Economy into the lack of acceptance non-cash and recognition within organizations. They also offer Rewards and interesting insight into what information might help raise the perceived level of effectiveness of nonTurning the Tide: A View In To “Making the Case” Recognition cash reward and recognition and what tools are needed to get there. To that point, when asked, only 35% said there was “nothing” thatincould bepart done their organization accept non-cash rewarda and As noted the first of to thehelp paper, a third of respondents reported not having known non-cash recognition as a motivational tool.reward and recognition program within their organization. These respondents offer an important view into the lack of acceptance of non-cash rewards and recognition within organizations. They also offer interesting into benefits what information mightreward help raise Almost 60% of respondents said that more information on theinsight cost and of non-cash andthe perceived level of effectiveness of non-cash reward and recognition and what tools are needed recognition programs would help build the case for these tools. Almost half said they needed more to get there. To that point, when asked, only 35% said there was “nothing” that could be information to help management embrace non-cashaccept reward and recognition done to help their organization non-cash reward and programs recognition as as amotivation motivational tool.
on administration and fair application that would help build the case. Not surprisingly, 43% said they needed more budget to run a program. Interestingly, close to a third said that in order for non-cash reward and recognition programs to work within their organization they would need a different corporate culture all together. 
Diagram 14: For Those Without Programs, What Would Help? Diagram 14: For Those Without Programs, What Would Help?
Ot h No er th in g
nf M oo n or M e In Adm or fo in eI n f o n C istra o tio In os fo t n M on Fa /Be to or ir ne eI He Ap n fi lp M fo o plic ts n an a tio Le ag em gal n Is en t A sue s cc ep t ... M Di o re f Un fere Bud ge su nt t cc es Cult sfu ur l In e pa st
45% 58% 45% 27% 47% 43% 33% 6% 5% 35%
M or eI
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tools. Forty-five percent reported it was more information on administration and fair application that Almost of respondents saidthey thatneeded more information on the cost aand benefits of nonwould help build the case. Not 60% surprisingly, 43% said more budget to run program. cash reward and recognition programs would help build the case for these tools. Almost Interestingly, close to a third saidthey thatneeded in order forinformation non-cash reward and recognition programs to reward work and half said more to help management embrace non-cash within their organizationrecognition they would need a different corporate culture all together. programs as motivation tools. Forty-five percent reported it was more information
Non-Cash Rewards and Recognition in the New Economy: An HR Perspective
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HR Perspectives on Non-Cash Rewards and Recognition in the New Economy
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Rewards and Recognition
Conclusions Although recent economic years have been tumultuous, non-cash reward and recognition tools remain an important component of the HR toolbox. A high rate of overall market usage (67%), prevalent corporate support, sourcing partnerships evident in numerous market areas, and solid budgets seem to be strong indicators of non-cash reward and recognition’s emerging role of importance in the new economy. Likewise, as programs have recalibrated from previous years, HR seems to have a more unified opinion on the effectiveness of these tools for increasing engagement, productivity and sales. However, the low rate of insight into sales and marketing efforts, the high rate of divisional programs, and the failure to sometimes represent more than 50% of the corporate spend, show that HR still has room to grow if it is to be a true strategic partner for non-cash rewards and recognition across the enterprise. Elevating HR to this level will, in turn, only lead to more effective programs, and likewise a more productive, engaged workforce.
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