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Hr perspectives

  1. 1. Research paperRewards andRecognition HR Perspectives on Non-Cash Rewards and Recognition in the New Economy Sponsored by www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 WP_IHR_HRPerspectivesNnCshRwrdsRec.indd
  2. 2. Research paper HR Perspectives on Non-Cash Rewards and Recognition in the New EconomyRewards andRecognition Introduction It is no secret that the great recession has resulted in a significantly different structure in the corporate landscape. The economy has led to many organizations with stalled partnerships, smaller footprints, and jagged growth curves. On the inside, rapidly changing corporate directives, fewer resources, and a smaller workforce challenge most corporate initiatives. This environment raises a number of questions from an HR perspective. Has the HR motivation toolbox changed? And if so, to what extent do non-cash rewards and recognition fit in to this tool box? IHR Research Paper Recent studies by McKinsey, Aberdeen and others seem to indicate an increasing focus from executive and sales management on non-cash rewards and recognition. McKinsey’s recent report Motivating People; Getting Beyond Money openly challenges the traditional thinking of cash as the end all motivator. The report finds strongly in favor of non-cash motivators (including praise from immediate managers), and lists these motivators as being more effective than the three highest-rated financial incentives (i.e., cash bonuses, increased base pay, and stock options).1 Likewise, Aberdeen research found that Best-in-Class companies (i.e. those with the highest financial and operational results) were more than twice as likely as all other firms to provide non cash incentives, with 21% of Best-in-Class organizations highly utilizing them versus 10% of all other companies.2 The effectiveness of various non-cash reward and recognition strategies from an HR perspective, the structure of the programs and corporate support thereof was the subject of a 2012 survey by HR.com targeted at HR owners of non-cash reward and recognition programs. High Level Findings: • Although non-cash reward and recognition programs are frequently sponsored at the corporate level and the HR function is the primary champion of all-employee programs, HR has been slow to become the true corporate-wide strategic partner for non-cash rewards. HR respondents reported that they only represent 50 to 80% of the overall non-cash R&R spend. • Sourcing for non-cash rewards remains broad-based, with organizations partnering across many types of providers and intermediaries. Promotional product companies, recognition companies, incentive companies, and retail stores remain the go-to sources for non-cash awards. • Print communications, websites, and in-house administrators are the primary means of program support and awareness. • The perceived effectiveness of various non-cash motivators changes depending on the organizational goal (engagement, sales, productivity). • Cost/Benefit Information was the most often cited information that could help “sell” reward and recognition internally. 1 https://www.mckinseyquarterly.com/Motivating_people_Getting_beyond_money_2460 2 http://theirf.org/research/content/6085642/rewards-and-recognition-as-a-vital-compensation-component/ www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 2
  3. 3. Research paper HR Perspectives on Non-Cash Rewards and Recognition in the New Economy 2. Methodology and Sample PopulationRewards and Methodology and Sample PopulationRecognition The study was fielded electronically instudyspring of electronically in the spring of 2012251 Responses with members The the was fielded Diagram 1: to the majority of HR.com Planning and received 603 responses, giving it a 99% confidence level with a +/-5% confidence interval. 2012 to the majority of HR.com Responsibility members and received 603 Responses with Planning Responsibility Diagram 1: 251 responses, giving it a 99% Travel Only 1% Travel + R&R confidence level with a +/-5% 20% confidence interval. IHR Research Paper Of these 603 respondents, approximately 67% had formal non-cash reward and recognition programs or incentive travel programs. Of the 401 R&R Only 79% respondents with programs, 251 had either direct or indirect planning duties in either the non-cash reward and recognition programs or Of these 603 respondents, approximately 67% had formal non-cash reward and recognition incentive travel programs. Duetravel programs. Of the 401 respondents with programs, 251 had responses, programs or incentive to the limited number of travel-related program owner either limited conclusions on incentive travel could either the non-cash reward and The data does however direct or indirect planning duties in be extracted from the data. recognition programs support the or incentive travel understanding that the HR function of travel-relatedrole in the planning and commonly held programs. Due to the limited number has a limited program owner responses, limited conclusions on incentive travel could be extracted from the data. The data use of incentive travel in most organizations. The sample population was also a broad, general does however support the commonly held understanding that the HR function has a limited role reflection ofin themarket in both industry and organizational size. the planning and use of incentive travel in most organizations. The sample population was also a broad, general reflection of the market in both industry and organizational size. Diagram 2: Respondents by Industry Diagram 2: Respondents by Industry Media and Hospitality Entertain. 2% Travel 2% 1% Services Other Ag/Mining 15% 12% 2% Construction 4% Manufacturing 13% Education 7% Finance 8% Transportation NonProfit 2% 7% Govt 8% Health Retail 8% 3% Telecom  Wholesale 5% 1% www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 2 3
  4. 4. Research paper HR Perspectives on Non-Cash Rewards and Recognition Diagram 3: % of Respondents by Employer in the New Economy Rewards and Size Recognition Diagram 3: % of Respondents by Employer Size 13% 8% 1 to 19 employees 7% 18% 20 to 99 employees 100 to 499 employees 500 to 999 employees 18% 1000 to 4999 employees IHR Research Paper 5000 to 9999 employees 25% 10,000+ 11% Benchmarking the Sponsorship of Non-Cash Reward and Recognition Programs As the landscape for ownership of many organizational initiatives has changed in the last five to eight years, one of the focal points of the study was to understand and benchmark where sponsorship for non-cash reward and recognition programs resonates in the new economy.3. Benchmarking the Sponsorship of 4 reveals, non-cash reward andrecognition programs receive a surprisingly large As Diagram Non-Cash Reward and Recognition Programs amount of sponsorship at the corporate level with 73% of respondents noting that their non- cash reward and recognition programs have corporate sponsorship. This is a notable change toAs the landscape for ownership of the primarily dispersed and divisional reward programs prevalent in the 1990’s. It also reflects the consolidated decision-making and efficiency efforts of many modern organizations.many organizational initiatives haschanged in the last five to eight years, Diagram 4: At What Level Areone of the focal points of the study Non-Cash R&R Programs Diagram 4: At What Level Are Non-Cash R&R Programs Sponsoredwas to understand and benchmarkwhere sponsorship for non-cash Sponsored? 73%reward and recognition programsresonates in the new economy. As 39% 36%Diagram 4 reveals, non-cash rewardand recognition programs receive asurprisingly large amount of Corporate Division Departmentsponsorship at the corporate levelwith 73% of respondents noting thattheir non-cash reward and Additionally, as Diagram 5 shows, the HR organization does continue to play a significant andrecognition programs have corporate sponsorship. This role notableorganization and sponsorship of non-cash reward and recognition predominant is a in the change to the primarily dispersedand divisional reward programs prevalent programs with It also88% of respondents revealing that the HR department is one of the key in the 1990’s. over reflects the consolidated decision-making and efficiency efforts of many modern organizations. and organizers of reward and recognition programs. Less than 20% of budgetary sponsors respondents reported having non-cash reward and recognition programs also sponsored in theAdditionally, as Diagram 5 shows, the sales and marketing departments.HR organization does continue to playa significant and predominant role in Diagram 5: HR Department isthe organization and sponsorship of Key Sponsor Non-Cash Rewards and Recognition in the New Economy: An HR Perspectivenon-cash reward and recognition 3programs with over 88% of www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 88%respondents revealing that the HR 14% 16% 6% 1% 4 1%department is one of the keybudgetary sponsors and organizers of t t
  5. 5. sh reward and programs have corporate sponsorship. This is a notable change to the primarily dispersed Research It also al reward programs prevalent in the 1990’s.paper reflects the consolidated decision- efficiency efforts of many modern organizations. , as Diagram 5 shows, the tion does continue to play HR Perspectives on Non-Cash Rewards and Recognition and predominant role in in the New 5: HR Department is Diagram Economy tion and sponsorshipand Rewards of Key Sponsor Diagram 5: HR Department is Key Sponsor Recognition ward and recognition th over 88% of 88% revealing that the HR 14% 16% 6% 1% 1% is one of the key ponsors and organizers of pt ow pt t t pt ep ep De recognition programs. De De kn gD sD HR el gs t le n tin av ti n % of respondents Sa Do ke Tr ee ar M M ving non-cash reward and IHR Research Paper programs also sponsored and marketing Benchmarking Resources for Non-Cash Reward and s. Recognition Programs: Budget and Support At a time when US organizations are sitting on an estimated $1.6 trillion worth of capital reserves, it would not be surprising to find that non-cash reward and recognition programs have been slowly drained of budgetary and support resources. According to respondents however, as seen in Diagram 6, this has not happened. Ranges in terms of budget size varied from $50,000 to over $5 million. Not surprisingly however, the size of the budget varied by the size of the organization, with 100% of organization with less than 20 employees reporting a $50,000 or smaller budget and larger organizations claiming the larger annual expenditures. -Cash Rewards and Recognition in the New Economy: An HRwas that although respondents were program decision makers, the More interesting however, Perspective 4 majority of them identified that the budget amount they listed only represented between 50% and 80% of their estimate of the corporation’s actual overall spend. (Table 1) This could speakmarking Resources for Non-Cash Reward and Recognition either to the wide amount of individual spending that happens at various levels of management or to the unknown amounts represented in the sales and marketing divisions discussed above.ms: Budget and Support It is, however, another indicator that HR still may have more ground to cover in becoming the primary strategic partner for all reward and recognition initiatives. US organizations are Diagram 6: Expenditure on Non-Cash R&R Diagram 6: Expenditure on Non-Cash R&Rtimated $1.6 trillion reserves, it would not 17% find that non-cash 2% < $50,000 $50,001 +ognition programs have 0% $100,001 + 0% ined of budgetary and 3% $250,001+ $500,001 +ces. According to 2% 48% $1,000,001 + wever, as seen in 3% $2,000,001 + $3,000,001 + has not happened. 5% $4,000,001 +s of budget size varied > $5,000,000o over $5 million. Not 8% Dont knowwever, the size of the 12% y the size of the ith a 100% of organization with less than 20 employees reporting a $50,000 or smaller er organizations claiming the larger annual expenditures. More interesting however, gh respondents were program decision makers, the majority |of them identified that the www.hr.com 1-877-472-6648 copyright © HR.com July 2012 they listed only represented between 50% and 80% of their estimate of the 5ctual overall spend. (Table 1) This could speak either to the wide amount of individual
  6. 6. Research paper HR Perspectives on Non-Cash Rewards and Recognition in the New Economy Rewards and Table 1 Budget Size: Percent of Respondents by Organization Size Recognition that Reported the According Size of Organization <$50k $50k+ $100k+ $250k+ $500k+ $1MM+ $2MM+ $4MM+ $5MM+ 1-19 Employees 100% 0% 0% 0% 0% 0% 0% 0% 0% 20-99 Employees 77% 6% 3% 3% 0% 0% 3% 0% 0% 100-499 Employees 58% 14% 11% 1% 3% 1% 0% 0% 0% 500-999 Employees 44% 17% 3% 8% 3% 3% 0% 0% 0% 1,000-4999 Employees 40% 13% 13% 9% 4% 0% 4% 0% 0% IHR Research Paper 5,000-9999 Employees 18% 18% 24% 6% 0% 6% 6% 0% 6% 10,0000+ Employees 8% 5% 3% 8% 8% 5% 11% 3% 11% Although the HR respondents acknowledged that their program spend represented only a portion of the overall R&R outlay, they were also unified that their budgets go primarily to non-sales employee recognition and rewards. When asked, “What percent of your overall non- cash reward and recognition expenditure goes for the following program types?”, an average of 67% of the spend went to non-sales employee recognition rewards, 18% went to sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once again, these numbers most likely represent the focal point of HR responsibilities versus the spend that occurs in the sales or marketing organization for sales and channel programs. Also of important note is that these budgetary resources are used not only for rewards, but also for a variety of other program elements. Sixty percent of respondents reported that their organization supports non-cash reward and recognition programs with print communications, 40% reported supporting their programs with a program website, and nearly 40% support their programs with dedicated in-house administrators. Mobile applications and outside administrative support were used by less than 10% of respondents.Although the HR respondents cknowledged that their program Diagram 7: % of Budget Represented pend represented only a portion Diagram 7: Smaller Budgets RepresentSmaller Portion of Overall Spend Smaller Budgets Represent Smaller Portionof the overall R&R outlay, they of Overall Spendwere also unified that their 100budgets go primarily to non-sales 90employee recognition and 80 70 ewards. When asked, “What 60percent of your overall non-cash 50 40 eward and recognition 30 20expenditure goes for the 10 ollowing program types?”, an 0 verage of 67% of the spend went + + + + 0 1+ w + + + M M M M 0 01 01 01 no 00 ,0 M M M M ,0 ,0 ,0 50 tk 0, $1 $2 $4 $5 00 50 00 <$ $5 no o non-sales employee $1 $2 $5 Do ecognition rewards, 18% went o sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once gain, these numbers most likely represent the focal point of HR responsibilities versus the spend thatoccurs in the sales or marketing organization for sales and channel programs. Also of important note is hat these budgetary resources are used not only for rewards, but for a variety of other program www.hr.com | 1-877-472-6648 copyright © HR.com July 2012elements. Sixty percent of espondents reported that their 6organization supports non-cash Diagram 8: Methods Used to Support
  7. 7. recognition rewards, 18% went to sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once again, these numbers most likely represent the focal point of HR responsibilities versus the spend that Research paper occurs in the sales or marketing organization for sales and channel programs. Also of important note is that these budgetary resources are used not only for rewards, but for a variety of other program elements. Sixty percent of HR Perspectives on Non-Cash Rewards and Recognition respondents reported that their in theDiagram 8: Methods Used to Support New Economy organization supports non-cash Rewards and reward and recognition Diagram 8: Methods UsedPrograms to Support Programs Recognition programs with print Other communications, 40% reported Outs i de Admi ni s tra ti ve Support supporting their programs with Dedi ca ted In-Hous e Admi ni s tra tors a program website, and nearly Mobi l e Appl i ca ti on for Progra m 40% support their programs Integra ti on wi th Soci a l Medi a with dedicated in-house Progra m Tra i ni ng administrators. Mobile Progra m Webs i te IHR Research Paper applications and outside Pri nt Communi ca ti ons administrative support were 0% 10% 20% 30% 40% 50% 60% 70% used by less than 10% of respondents. Effectiveness of Non-Cash Motivators Varies by Organizational Goal With resources, both budgetary and administrative, relatively scarce over the last few years, many organizations have taken the opportunity to re-evaluate the effectiveness of various tools and recalibrate where needed. The same can be said of non-cash reward and recognition5. Effectiveness of Non-Cash Motivators Varies by Organizational Goal programs. As Diagram 9-11 show, when asked how effective various non-cash reward and recognition tools were in increasing engagement, sales, and productivity within the modern organization, the HR perspective varied markedly in both magnitude and in type depending onWith resources, both the target population.budgetary and administrative,and Recognition in the9: Non-Cash R&RHR Perspective in Non-Cash Rewards Diagram New Economy: An Effectiveness 6relatively scarce over the last Increasing Engagement Diagram 9: Non-Cash R&R Effectiveness in Increasing Engagementfew years, manyorganizations have taken the 70% 60%opportunity to re-evaluate 50%the effectiveness of various 40%tools and recalibrate where 30% Extremely effectiveneeded. The same can be 20% Effectivesaid of non-cash reward and 10% 0%recognition programs. As s el s e es ch m l d ve dis av it eDiagram 9-11 show, when ar l er gib ra Tr an tc M en rT n ch bi or ta fo k De er sf To Inasked how effective various s M rd rd ca Ca ft ftnon-cash reward and Gi Girecognition tools were inincreasing engagement, sales, and productivity within the modern organization, the HR perspective As seen in Diagram 9, HR owners of non-cash reward and recognition programs were veryvaried markedly in both magnitude and in type dependingnon-cashtarget population. engagement within their organizations. positive about the role on the awards play in elevating Almost 70% reported that in their experience Gift Cards for merchandise were either extremelyAs seen in Diagram 9, HR owners of non-cash reward andat increasing engagementwere very positive about Just over 60% of effective or effective recognition programs within their organizations. respondents reported that intangibles such as time off, reserved parking spaces, etc. were inthe role non-cash awards play in elevating engagement within their organizations. Almost 70% reported their experience either effective or highly effective in increasing engagement. Nearly half feltthat in their experience Gift Cards for merchandise were either extremely effective or effectivethird found debit cards, token that merchandise was effective or highly effective. Less than a atincreasing engagement within their organizations. effective or60% of respondents increasing engagement. items or travel Just over extremely effective at reported thatintangibles such as time off,reserved parking spaces, etc. www.hr.com | 1-877-472-6648 copyright © HR.com July 2012were in their experience either Diagram 10: More than Half Feel 7effective or highly effective in Intangibles Effective At Increasingincreasing engagement. Nearly
  8. 8. n in Diagram 9, HR owners of non-cash reward and recognition programs were very positive aboute non-cash awards play in elevating engagement within their organizations. Almost 70% reported Research paper their experience Gift Cards for merchandise were either extremely effective or effective at ing engagement within their organizations. Just over 60% of respondents reported that bles such as time off, HR Perspectives on Non-Cash Rewards and Recognitioned parking spaces, etc.n their experience either in the New Economy than Half Feel Diagram 10: More Rewards andve or highly effective in Diagram 10: More Effective At Increasing Intangibles than Half Feel Intangibles Effective At Increasing Recognition ing engagement. Nearly Productivity Productivity t that merchandise wasve or highly effective. 60% an a third found debit 40%token items or travel 20%ve or extremely effective Extremely effectiveeasing engagement. 0% Effective s el ds e es IHR Research Paper ch m el dis av te av ar ibl er Tr an tc ni Tr ng Mram 10, the effectiveness ch ke bi or ta or De er To In sf sf Me tools changed when rd rd Ca Ca ft ftus was productivity Gi Gi half felt that intangibles were highly effective at increasing productivity and close to half felt the sameengagement. More than regarding gift cards.Diagram 10, the effectiveness of these tools changed when the focus was productivity versus In engagement. More than half felt that intangibles were highly effective at increasing productivity Lastly, the scale and perceived effectiveness regarding gift cards. motivators shifted again when the and close to half felt the same of various non-cash Non-Cash Rewards and Recognition in themotivating sales. An HR Perspective owners felt that gift cards for organizational focus was New Economy: Overall, HR program 7 Lastly, the scale and perceived effectiveness of various non-cash motivators shifted again merchandise, intangibles and travel were the was motivating sales. Overall, HR program owners felt that when the organizational focus most effective non-cash motivators for increasing sales. Of important note, between 30 and 50% of respondents stated they don’teffective non-cashthese tools are gift cards for merchandise, intangibles and travel were the most know whether motivators for increasing sales. Of important note, between 30 and 50% of respondents stated they effective with sales, or that it is not applicable to their organization. This seems to reiterate that HR don’t know whether these tools are effective with sales, or that it is not applicable to their could be a more effective partner within to reiterate that HR could be a more effective partner within their organization. This seems their organizations if they understood the implications of non- cash reward and recognition for they understood the implications of non-cash reward and recognition for organizations if multiple populations and goals. multiple populations and goals.  Diagram 11: Intangibles and Gift Cards seen as Diagram 11: Intangibles and Gift Cards seen as Most Effective for Most Effective for Motivation SALES Motivation SALES 35% 30% 25% 20% 15% 10% Extremely effective 5% 0% Effective s el ds e es ch m l dis ve av te ar l er gib t ra Tr an tc ni M n ch ke bi or ta or De er sf To In sf M rd rd Ca ca ft ft Gi Gi www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 8
  9. 9. Research paper 6. Sourcing Non-Cash Reward and Recognition Tools The last several yearsPerspectives on Non-Cash Rewards and Recognition HR have also brought a very strong push by many in the New Economy Diagram 12: Gift Cards Sourced from larger organizations to consolidate Rewards and Sourcing Non-Cash Reward andRecognition Co,Tools spending and sourcing decisions Recognition Retail Stores, Recognition Incentive Co, primarily through the procurement and Internet The last several years have also brought a very strong push by many larger organizations to department. Such efforts certainly sourcing decisions primarily through the procurement department. consolidate spending and 20% 25% 35% 5% also 20% a change prove to place downward pressure to place downward pressure on prices, but can5% lead to10% 13% Such efforts certainly prove 14% on prices, but can alsolandscape a successful provider partners. When asked from where various non-cash 7% in the lead to of 9% l A ny y resources were sourced, the answer was dispersed and dependent on the award type. In the . nc re Co pa change in the landscape 35% of respondents had sourced gift cards for their programs from retail stores, last year, of l et ve cy ge to m on rn tra en il S r rp e Co . de te a.. r iti .. Ag he ve ta successful provider partners. When through recognition companies, and a fifth had used an incentive ct In is. gn 25% had purchased them or uf cing Non-Cash Reward and Recognition Diagram 13 shows, respondent’s sourced merchandise for non- Tools Re tiv Ot ra re Ad sD co an ail .T Di en asked from where various non-cash As company or the Internet. Re m ct M c du In m IHR Research Paper Co cash reward and recognition programs from arguably different sources. In the last year, almost fro ro op resources were sourced, respondents had purchased merchandise from a promotional products organization, a third of the answer ct veral years have also re om Di Pr was dispersed and dependent on a recognition company, over 20% had used a retail store, and a fifth very strong push by many over a quarter had used the award type. In the last year,12: Gift Cards Sourced from Diagram had once again used an incentive company. nizations to consolidate DiagramStores, Recognition Co, Incentive Co, Retail 12: Gift nd sourcing decisions of respondents had sourced Cards Sourced from Retail Stores, Recognition Co, Incentive 35% Co, and Internet hrough the procurement for their programs from and Internet gift cards retail stores, 25% had purchased them through recognition companies, and a fifth had used an incentivent. Such efforts certainly 20% 25% 35% ace downward pressure or the internet. As Diagram 13 shows, respondent’s sourced merchandise for non-cash reward company 5% 5% 20% 10% 13% 7% 14% 9% but can also lead to a recognition programs from arguably different sources. In the last year, almost a third of and l A ny y he landscape of respondents had purchased merchandise from a promotional products organization, over a quarter had . nc re Co pa l A d ne t ve cy ge to m on tra en il S r r rp e Co . de te provider partners.used a recognition company, over 20% had used a retail store, and a fifth had once again used an a.. r iti .. Ag he ve ta When ct In is. gn or uf Re tiv Ot ra re sD co an ail .T Di enm where various non-cash company. incentive Re m ct M c du In m Co fro ro opwere sourced, the answer ct re om Di Pr sed and dependent on Diagram 13: Merchandise Sourced Mainly type. In the last year,pondents had sourced from Promo Dist, Recognition Co, Diagram 13: Merchandise Sourced Mainly from Promo Dist, Recognition Co,or their programs from Incentive Co, and Retail Store Incentive Co, and Retail Store s, 25% had purchased them through recognition companies, and a fifth had used an incentive r the internet. As Diagram 13 shows, respondent’s sourced merchandise for non-cash reward 30% 28%nition programs from arguably different sources. In the last year, almost a third of 20% 22% 19% 17% 16% ts had purchased merchandise from a promotional products organization, over a quarter had 10% 3% 6% 3%ognition company, over 20% had used a retail store, and a fifth had once again used an ompany. cy et r re . er l he Co ve c.. en rn . to om or d l .. . .. ... Ot tra du te on Ag il S Co e Co ve m ro In ail ct iti ta Ad fro ra op re Diagram 13: Merchandise Sourced Mainly gn M Re tiv .T ct Di co en rp re Re c Pr Di In from Promo Dist, Recognition Co, Incentive Co, and Retail Store Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 9 28% 30% 22% www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 20% 19% 17% 16% 10% 6% 9 3% 3%
  10. 10. Research paper7. Turning the Tide: A View In To “Making the Case” As noted in the first part of the paper, a third of respondents reported not having a known non-cash HR Perspectives on Non-Cash Rewards and Recognition reward and recognition program within their organization. These respondents offer an important view in the New Economy into the lack of acceptance of non-cash rewards and recognition within organizations. They also offerRewards and insight into what information might help raise the perceived level of effectiveness of non- interestingRecognition Turning the Tide: A View In To “Making the Case” cash reward and recognition and what tools are needed to get there. To that point, when asked, only 35% said there was “nothing” that could bepart of to help theirthird of respondents reported not having a and As noted in the first done the paper, a organization accept non-cash reward known non-cash reward and recognition program within their organization. These respondents offer recognition as a motivational tool. an important view into the lack of acceptance of non-cash rewards and recognition withinAlmost 60% of respondents said that morealso offer interesting insight and benefits of non-cash reward and organizations. They information on the cost into what information might help raise the perceived level of effectiveness of non-cash reward and recognition and what tools are neededrecognition programs would help build the case for these tools. Almostsaid there was “nothing” more to get there. To that point, when asked, only 35% half said they needed that could beinformation to help management embrace non-cashaccept non-cash reward and programs as a motivational tool. done to help their organization reward and recognition recognition as motivationtools. Forty-five percent reported it was more information on administration and fair application that IHR Research Paperwould help build the case. Not 60% of respondents said thatneeded more budgetthe run aand benefits of non- Almost surprisingly, 43% said they more information on to cost program. cash reward and recognition programs would help build the case for these tools. AlmostInterestingly, close to a thirdsaid they needed more information reward management embrace non-cash reward and half said that in order for non-cash to help and recognition programs to workwithin their organizationrecognition programs as motivation tools. Forty-five percent reported it was more information they would need a different corporate culture all together. on administration and fair application that would help build the case. Not surprisingly, 43% said they needed more budget to run a program. Interestingly, close to a third said that in order for Diagram 14: For Those Without non-cash reward and recognition programs to work within their organization they would need a different corporate culture all together.  Programs, What Would Help? Diagram 14: For Those Without Programs, What Would Help? 45% 58% 45% 27% 47% 43% 33% 6% 5% 35% No er g et l In e in h st ur M fo o plic ts dg n Ot s th em gal n tio t A sue pa fi . es Cult io Bu t.. ne at n f o n C istra ep Is Di o re Fa /Be su ent cc sfu in M t Ap r os Le M e In Adm ffe en ir n cc n M on M oo Un fo ag n eI nf o an or eI or eI or lp or M He to fo In Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 10 www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 10
  11. 11. Research paper HR Perspectives on Non-Cash Rewards and Recognition in the New EconomyRewards andRecognition Conclusions Although recent economic years have been tumultuous, non-cash reward and recognition tools remain an important component of the HR toolbox. A high rate of overall market usage (67%), prevalent corporate support, sourcing partnerships evident in numerous market areas, and solid budgets seem to be strong indicators of non-cash reward and recognition’s emerging role of importance in the new economy. Likewise, as programs have recalibrated from previous years, HR seems to have a more unified opinion on the effectiveness of these tools for increasing engagement, productivity and sales. However, the low rate of insight into sales and marketing efforts, the high rate of divisional programs, and the failure to sometimes represent more than IHR Research Paper 50% of the corporate spend, show that HR still has room to grow if it is to be a true strategic partner for non-cash rewards and recognition across the enterprise. Elevating HR to this level will, in turn, only lead to more effective programs, and likewise a more productive, engaged workforce. www.hr.com | 1-877-472-6648 copyright © HR.com July 2012 11

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