Awards: Cash
With time at a premium, many managers prefer cash for the pure simplicity of it. Simply set a goal and tell people: Achieve it and you win! Then, cut the check, include it in the next payroll, or deduct it from the customer’s invoice. Sounds simple, but does this approach have anything to do with rewards and recognition strategies? Do-this, get-that programs essentially add up to legal and ethical bribes, and offering cash in this manner, while perfectly ethical, gets the award lost in cash flow without any marketing, communication, or residual value except the expectation, in the future, that more cash will come. A good question to ask when you are thinking about using cash: Is this part of a program your company wants to offer on an ongoing basis, as part of its compensation or pricing program?
Pros:
- Simplicity
- Recipients understand it.
Cons:
- No trophy value
- Often viewed as compensation or pricing
- Can foster program addiction.
