Alternatives to Cash Incentives

• Non Cash Incentives

1. Merchandise - Luxury gift products

2. Travel - something people are trying to cut back on cost-wise, but it’s
something they want to retain.
3. Gift Cards - ranked as the most frequently used type of corporate
reward.
• Non Monetary Incentives

1. Recognition - The best of all worlds is some sort of reward backed

up with good recognition.
2. Flexible working hours, paid holidays, sponsored club
memberships, high employee morale, encouraging new ideas,
and providing people with the opportunity to grow and develop
can contribute greatly to a sense of motivation in your workforce.
 Advantages of Non Cash Incentives
1. Memory value – Cash is important, but it has no
memory element. It goes right in the bank or gets
spent.

2. Trophy value – Noncash incentives hold a valuable

mental cost/benefit tradeoff, and as income increases,
a person's perception of the value of a money
decreases.

3. Flexibility – Noncash reward programs can be easily

tailored to meet many organizational goals
 Incentive Proposal
• Low Level Workers
 Gain  sharing  program - Which  grants additional earnings to
 employees  for  productive  efforts.
 Profit  sharing plans - Which distributes a  portion  of the  firm's
 profit  to  all  employees at  a  pre-determined rate.
• Supervisors and Middle Level Managers
 Management bonus – Which provides managers with lump
sum payments for excellent performance.
 Offer it along with the Non Monetary benefits
• Senior Grade Managers
 Employee  stock  option  plan - Which sets  aside  stock in the
 company  for  employees to  purchase at  a   reduced  rate.