Non-cash incentives are a means of incentivising higher performance among employees by the awarding of prizes or ‘gifts’ – such as merchandise, travel or retail vouchers – linked to some performance measure.
While the incentivisation industry is more highly developed in the USA, it is also growing in popularity in the UK. Typically found in customer-facing industries, schemes may be based on the use of a single prize to be won by the highest-performing individual employee. Alternatively, they might encompass a range of awards recognising different levels of achievement.
The CIPD has produced information that sets out the rationale for the use of non-cash incentives, summarises the differing types of non-cash incentives used by employers, considers links with employee recognition schemes and explores the pros and cons of non-cash incentive schemes. Read the CIPD factsheet to find out more.
Further informationBusiness Link's information library gives you instant access to information and tools to help you tackle key business issues. View our guide to motivating your staff.
Access to help and supportIf you would like to talk about staff recognition and how we could support your business, call the business adviser team on 0845 00 66 888 or use our contact us form.