Research has shown that when trying to motivate staff, non-cash items can bring bigger rewards. When asked about their biggest motivators, Generation Z is driven by more than just money. An effective reward is one that increases employee effort, drives their performance and encourages repeat behaviour to earn more rewards.

The key to a successful incentive programme is to truly understand the types of rewards that will appeal to your employees and motivate them to stay at your company.

Here are some of the pros and cons of both types of incentives:

Cash rewards

  • This is a more straightforward way to reward ALL employees in one go.
  • Staff are free to choose how and where they spend the reward.
  • You will not discriminate against staff and their beliefs by offering a cash reward to all.

However:

  • If staff get used to receiving a bonus/cash reward then this can lose its novelty factor and become an expected perk.
  • It could be seen as a ‘non-memorable’ reward or motivator.
  • For generation Z, it doesn’t drive brand loyalty.

Non-cash benefits

  • They are always more memorable and will help to build loyalty.
  • Rewards can be tailored to individual staff members.
  • Memorable experiences will help to retain staff and boost morale.
  • However, they can require a lot of time to organise and set up.

Types of perks

  • Awards: these are ideal for those who are motivated by recognition and achievement. For example, ‘star employee’ programmes or staff awards recognising the successes of staff in particular areas. We’ve put together a free certificate template for you to customise.
  • Learning and development: these include conference passes or tickets to events. Ideal for those who want to further their career or personal development. Take a look at CPD for ideas.
  • Time off: days off for special occasions (such as birthdays) or dedicated days for specific tasks (such as Christmas shopping).
  • Volunteering: ideal for staff who want to be able to give back. This can be motivating for an entire team to take part in a volunteering day and work together. The CIPD has this useful factsheet on staff volunteering.
  • Social events: including team building days, lunches or even overnight stays can help bond employees. We like these ideas from Hubspot with a free download.

What to consider

  • Take into consideration your employees’ culture. What are they motivated by? Are there common themes or will you need to devise rewards individually for staff? Take a look at our interview with Platypus Digital which focuses on company culture.
  • Make sure your rewards scheme is in alignment with your company’s ethos and values.
  • Ask employees what they want. Consider a staff survey to find out what motivates them. We’ve got a free staff survey template for you to download.
  • Understand what you’re trying to achieve, and what you want the outcome to be.
  • Communicate clearly with staff about rewards, why you’re awarding them and what they will need to do.
  • Do not replace bonuses or cash incentives with non-cash rewards.
  • Continually refine and gain feedback on how staff feel so you can adjust if necessary.

Looking for more staff incentive ideas? Read our ideas for incentives on a budget or get in touch with our team for advice on how we can help.