Often my clients ask me what I think the incentives business through direct donation of money compared to other non-monetary incentive systems.
And each time, my answer is the same: the various principles of social and cognitive psychology demonstrate that Winners receive non-monetary incentive schemes more of the same value in cash.
Dr. Jeffrey Scott University Waterloo has written an interesting study in that it is justified by four factors: evaluability, separability, justifiability, and social reinforcement.
EVALUABILITY: as to give a monetary value on a non-monetary incentives is not easy, the reactions "instinctive" and "emotional" to award a substitute for its real value. Furthermore, evaluations tend to increase the emotional value beyond the real one!
separability: a cash prize pool to be cognitively salary. Thus, a cash prize and hardly notice it is easily forgotten. On the other side, a non-monetary incentive is unique and is instinctively separate from salary.
JUSTIFIABILITY: many non-monetary incentives are luxuries which the participants normally do not justify the purchase. If the participants in a high estimate, though not personally purchased, then the opportunity to receive as a reward for their hard work does not violate the moral principles of the participants.
SOCIAL REINFORCEMENT: the recognition of their abilities and merits from colleagues and friends is one of the most important motivators for most people. On the other hand, people are not socially acceptable to boast of their earnings, but at the same time they consider socially acceptable to talk about a trip or a prize!
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Often, I’m asked by my corporate clients what I think about pure cash versus non-monetary incentive.
And each time, my answer is the same: several principles of social and cognitive psychology suggest that winners perceive non-monetary incentive more valuable than the same value of that prize in cash.
Dr Scott Jeffrey of University of Waterloo wrote in one essay that there are 4 motives for this: evaluability, separability, justifiability, and social reinforcement.
EVALUABILITY: as giving a monetary value to non-monetary incentive is not easy, the “instinctive” and “affective” reaction to the award substitutes for its real value. Moreover, affective evaluations tend to increase value beyond the actual!
SEPARABILITY: a cash prize is cognitively aggregated with salary. Thus, a cash prize does not stand out and is easily forgotten. On the other hand, a non-cash incentive is unique and really stand out from salary.
JUSTIFIABILITY: many non-cash incentives are luxuries that participants normally would not justify purchasing. If participants value it highly, but probably would not purchase it, than the opportunity to earn it as a reward for hard work does not violate the participants’ principles.
SOCIAL REINFORCEMENT : acknowledgement from colleagues and friends is one of the most important motivators for most people. And people are uncomfortable bragging about cash, but will enjoy talking about the trip or the award They won!
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