Looking to get more out of your compensation resources? Of course, you are. Who isn’t?
Did you know that some HR and sales operations are already doing just that? They know that in the right situations and under the right circumstances, non-cash offerings can actually outperform more money.
You see, before we spend our hard earned cash, we go through an individual assessment. We ask ourselves; is this thing we want really worth it? The answer to that question often comes down to the way we perceive the differences between cash and non-cash income.
Additional cash in an employee’s pay envelope will encounter the same psychological hurdles as straight pay. Employees who earn any form of cash often need to justify spending it. People do that for almost everything—including the items we know we want, but people treat money like a limited resource.
Most of us are not comfortable spending cash on the things we may want but in the final analysis feel we really don’t need, and that applies to the things that will make us feel good about ourselves.
By offering non-cash rewards you take the psychological justification out of the equation. Your workers don’t go through the same thought process as they do with cash. Employees are free to enjoy the reward without the guilt. That’s what makes non-cash rewards more appealing and more motivating. Offering both within an intelligently designed portfolio helps you get more out of your compensation resources.