Tuesday, September 4, 2018

Study Shows Cash Not Always a Good Employee Motivator



Incentive Research Foundation (IRF) and the Incentive Federation have conducted an long term audit of a wide variety of studies in various industries. The audit found that non-cash awards can actually capture an employee's imagination better than cash—thereby motivating them to increase performance.

A study conducted by the White Conference on Productivity some years ago that showed that it would take $3 in cash compensation to drive the same results as $1 in non-cash rewards.  Combining results from both this research should be particularly interesting to safety managers for at least three reasons: 

·       Almost all cash award programs are back end loaded (the awards are given at the end) based on reducing accidents and then receiving awards.   This is the type of program is a cause for the non-reporting of accidents
·       Cash can cost at least three times more than non-cash programs for the same results.
·       Cash programs easily get confused with compensation and can become an entitlement

Safety incentive companies have known for years that a small positive immediate award has more impact on changing safety behavior than a large, future and uncertain one.  By consistently and continuously reinforcing the right safety behavior with small amounts of awards you will change behavior and produce results.  This is far easier done with noncash awards than cash.

For more information on AwardSafety products or services or other white papers please contact us at awardsafetyinfo@cox.net


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