Why Tangible Employee Recognition Outshines Cash Every Time
If you were to ask someone if they’d prefer an award or the cash-equivalent of that award, many people would choose the cash. And why not? It’s easy to transfer, always needed, and it can be spent on whatever they’d like. While cash is nice to receive, when it comes to employee recognition, it simply doesn’t achieve the right objectives. In fact, cash awards can lead to quite a few avoidable pitfalls in a company’s recognition program.
The Test of Time
The most notable distinction between cash and tangible awards can be seen in how the recipient processes the award. With cash, the recipient deposits it into their bank account and will tend to spend it on their normal expenses. A tangible award will be shown off likely photographed at an award ceremony and placed in a location where it can be displayed. The recipient and others will be able to see and talk about it, and the memory of the award will last for years to come. If the award is a lifestyle type item or a commemorative item the recipient can display or use the item every day that maximizes the award’s impact
Mental Accounting
One of the greatest pitfalls of cash awards is their tendency to turn great achievements into cold transactions. By placing a dollar value on the achievement, the company can trigger a process called “mental accounting” in their employees. This is a thought process where cash awards are mentally classified as just a part of one’s salary. This transforms the award from something that is special and given by the company, to something that is expected and owed to them. There’s also a danger that when employees see the dollar amount attached to their achievement, they won’t feel that it’s enough when weighed against the magnitude of their achievement. With a tangible award, people tend to view it at a higher perceived value due to the item’s imbued symbolism of their accomplishments.
Awards are Special
At the heart of corporate recognition is a sincere appreciation for the hard work and dedication of an individual. The company functions better because of them, and others should be positively encouraged to perform like them. An award from the company needs to be special. It’s distinct, truly earned, and can’t be obtained in any other way. Unlike cash, tangible awards have a branded tie to the company. They can be customized to fit the company’s branding, values, and culture, making them unique and specific to the occasion. As experts in the custom award industry, Royal Recognition does just that. There are countless ways to tastefully incorporate corporate branding into your awards program
In Conclusion
When choosing awards for an employee recognition program, it can be tempting to choose the cash route. However, even though we all need cash, what we truly want is to be appreciated and valued. Tangible awards simply outshine cash every time.
At Royal Recognition, whether you’re starting fresh or refining a long-standing programs, we’re here to help you turn thoughtful recognition into lasting value. Getting started with Royal Recognition is easy: simply drop us a email at sales@royalrec.com – call our offices at 800-756-9122 or visit our websites at www.royalrec.com or www.ampattire.com
Royal Recognition is a proud Wisconsin based company and has grown to work with over 1500+ clients worldwide – we currently have over 54 Global Distribution Sites that service over 84 countries.
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