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Research paper

Rewards and
Recognition

HR Perspectives on Non-Cash
Rewards and Recognition in
the New Economy

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WP_IHR_HRPerspectivesNnCshRwrdsRec.indd

Research paper

HR Perspectives on Non-Cash Rewards and Recognition


in the New Economy
Rewards and
Recognition

Introduction

IHR Research Paper

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. McKinseys 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, with21% 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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copyright HR.com July 2012

Research paper

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

IHR Research Paper

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%
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Telecom
5%

Retail
3%

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Non-Cash Rewards and Recognition in the New Economy: An HR Perspective

2 3

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

IHR Research Paper

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 1990s. 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 1990s.
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?

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
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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 1990s.paper
It also reflects the consolidated decisionefficiency efforts of many modern organizations.

IHR Research Paper

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

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 corporations 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,
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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

copyright HR.com July 2012

Research paper

HR Perspectives on Non-Cash Rewards and Recognition


in the New Economy

IHR Research Paper

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

<$
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
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elements. Sixty percent of
espondents reported that their
6
Diagram 8: Methods Used to Support
organization supports non-cash

IHR Research Paper

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

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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

copyright HR.com July 2012

M
er
ch
an
dis
In
e
Gi
ta
ft
n
Ca
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rd
le
sf
s
Gi
or
ft
M
Ca
er
rd
ch
sf
or
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Tr
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IHR Research Paper

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 dont
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
dont 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

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35%
30%
25%
20%
15%
10%
5%
0%

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Research paper

6. Sourcing Non-Cash Reward and Recognition Tools

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IHR Research Paper

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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, respondents 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%respondents
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, respondents 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%

30%
22%

19%
3%

www.hr.com | 1-877-472-6648

16%

17%

10%

6%

copyright HR.com July 2012

Research paper

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

IHR Research Paper

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

www.hr.com | 1-877-472-6648

10

copyright HR.com July 2012

10

Research paper

HR Perspectives on Non-Cash Rewards and Recognition


in the New Economy

IHR Research Paper

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 recognitions 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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copyright HR.com July 2012

11

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