Fact or Fiction: Dollar-for-dollar, travel incentives generate more than twice as much performance improvement as cash.
In order to create performance breakthroughs, organizations must look towards incentive programmes that are motivational, memorable and meaningful, to inspire customer, channel-partner and employee behaviours in support of targeted business objectives.
Identifying the most effective incentive programme is a major challenge. This can quickly fall into the cash-versus-non-cash debate.
Let’s talk about this in terms of cash versus incentive travel incentives. Did you know that incentive travel has been proven to be more effective than cash in a number of key studies?
- Motivational: According to a survey conducted by Corporate Meetings & Incentives, 58 per cent of respondents said travel is more effective than cash as a motivator. Based upon an Oxford Economics USA study, 76 per cent of executives agree, and 80 per cent of past earners of incentive travel agree, that incentive travel significantly affects employee morale, job satisfaction and performance.
- Memorable: Group incentive travel is more memorable than cash for those participants who have earned each in the past (2010 Maritz Cash/Non-Cash Reward & Recognition Market Study). Based upon an Incentive Federation Study, more than half of the respondents perceive that travel is remembered longest (57 per cent agree) and cash is remembered for the shortest time (58 per cent agree).
Factor in that incentive-travel investments yield a return on investment of more than $4 for every $1 spent (Oxford Economics USA study) for organizations and you have a long-term winning combination.
There’s another element to consider: the intangible and long-term impact of incentive travel.
Simply put, travel provides shared, memorable experiences. It becomes more than just a fiscal set of returns.
Intangibles, which are more qualitative in nature, affect loyalty, relationships and the ongoing motivational influences on corporate culture and teamwork.
If you’re going to debate cash versus non-cash, go deeper and think about specific incentive types, such as travel, that help create stronger motivational, meaningful and memorable values from your participants’ perspectives.