Why Gifts

Incentives help create positive emotion in the workplace, which greatly influences commitment to a work task
  • Recipients relive the special recognition and appreciate the organization that honored them
  • Items are memorable and reinforce the relationship between the reward earner and the reward provider
  • Awards appeal to the employees' higher needs thus increasing the aspirational and in turn motivational value.
Cash Vs Tangible rewards
Cash rewards Tangible rewards
Purely an extrinsic motivator with little emotional involvement; does not provide lasting satisfaction and long-term performance stimulation Carry a significant
trophy value
thus continue to reinforce the good performance and behaviors
Creates expectations, leads to entitlement and consequently looses its motivating value Provide tangible symbol of achievement and serve as an encouragement to other employees
A rupee is a rupee; participant attaches no greater emotional or inspirational value to cash. Lacks emotional impact of tangible rewards; thus quickly spent and forgotten Reinforce the association with sponsor company and thus increase loyalty
No "trophy" value to be a constant reminder and continue to motivate. It is difficult to show off; thus limits the lasting impact of the reward Provide guilt-free enjoyment of reward thus increase the motivating impact
Difficult to target a particular behavior because of the lacking association with a particular achievement Both extrinsic and intrinsic motivators; provide strong emotional appeal to participants' personal wants and interests
Recipients often can't recall what they purchased with cash reward which further diminished its impact Carry a higher perceived value because of the increased emotional attachment; therefore, stimulate performance better than cold cash
Minimal association with sponsor company due to minimal trophy value of reward which minimizes the potential of goodwill toward the company Can be attached to a particular behavior thus stimulating a specific response in a long term
Not cost-effective; requires three times the incentive investment compared to non-cash, on average Participant's family is involved in selecting and sharing awards thus multiplying the emotional value of the reward and its impact on the participant
Usually spent on necessities thus lacking a positive association with the targeted accomplishment or behavior Provide a 3-to-1 return on investment compared to cash. On average, cash programs cost 12 cents per incremental dollar netted by increased performance, versus 4 cents per dollar for non-cash programs
Participant feels guilty for not spending a cash award on necessities which taints the reward with unpleasant feelings Do not become an expected part of an employee income or an entitlement; always seen as a reward for a particular accomplishment or performance

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