Don’t Underestimate the Power of Merchandise over Cash

Premium Incentive Products Magazine: Most of us are familiar with the Capital One commercial featuring Jimmy Fallon where he poses the question “Who doesn’t want more cash?” According to The Power of Merchandise (Premium Incentives Product Magazine, Sept/Oct 2012), not your employees; at least not when it comes to rewards and incentives. Rick Dandes writes that now that companies are starting to see the light at the end of the tunnel from the Great Recession of 2008, employers are once again starting to use merchandise and other non-financial motivators to reward talented employees. Experts are noticing a disconnect from what employees claim they want (cash) and what they are actually valuing as rewarding. They are noticing that non-cash rewards are better, more effective motivators. Mike Ryan, Senior Vice President – Marketing and Strategy at Madison Performance Group in New York City states that ‘merchandise is a key reward because it is something tangible that recipients mentally account for separately from their pay.’ In other terms, when given cash as incentives, they see it as something indirectly tied to their pay and something they worked to earn. However, when given a merchandise reward, it is more commonly viewed as a bonus. Other reasons experts argue why employees value merchandise rewards more than cash is justification. In challenging economic times, not having to justify the merchandise becomes an even more attractive option, especially in an economy where shortages lead to over-justification of extra cash. Melissa Van Dyke, President of the Incentive Research Foundation, explains that ‘Non-cash awards are more difficult to attach a monetary value to because there are other social and emotional factors that add to the value of the item. When recipients focus their thoughts on the positive attributes associated with the award, it is ascribed a higher value.’ Merchandise reward products can be a powerful tool to assist you with several company efforts: drive brand awareness, drive engagement in loyalty programs and most recently discovered, a higher rewards motivator than cash. As the year-end approaches and companies look for rewards products for their employees, Captiv8 can help you find the perfect merchandise reward product. Visit the Captiv8 Portfolio to check our offerings or contact your regional sales representative.