About Cottrills
The real value of tangible awards over cash & vouchers
At Cottrills we have been passionate from Day One in our belief that tangible gifts have greater impact, motivation and longevity than cash or vouchers as a reward mechanism.
In conversations with potential new clients, we are often asked about the relative benefits of offering tangible gifts rather than cash rewards. In the main, cash rewards (and vouchers) are an easy option as they can be paid at the same time as salary. But that means that the cash reward is often spent on household items and the reward itself then becomes lost.
When tangible gifts are offered they must always allow for a choice of products that are relevant to the recipient’s lifestyle. This is not always easy with a diverse range of ages and lifestyles.
A common question we are asked is ‘How can the value of an award increase over and above its actual monetary value? ‘
Dr. Scott Jeffrey, Ph.D., developed a watershed research study (funded by the SITE Foundation in 2003) which explains how four psychological processes affect an award earner’s perception of tangible awards.
Although conducted some years ago, these research findings are still valid and demonstrate that tangible awards are more effective motivators than cash.
- Evaluability
Non-cash awards can be more difficult to attach a monetary value to them. Therefore, when participants focus their thoughts on the positive attributes associated with the award, it is ascribed a higher value.
- Justifiability
When a tangible award is something that a participant would not be able to purchase (or be able to afford) with cash on his or her own, the participant can justify the award. For an employee, being able to justify the award means it has greater power to be motivational. That’s why the Cottrills platform is known as ‘Aspirations.’
- Separability
Cash incentives tend to be aggregated with overall compensation – maybe paid in salary as a bonus. Non-cash incentives tend to be kept separate from compensation, thus standing out as rewards for recognition or performance. Research shows that recipients often forget what they have bought with cash rewards.
- Social reinforcement
Tangible awards have trophy value and are more likely to be acknowledged than would be the case if the award were in cash.
There are also social taboos associated with discussing cash rewards. It’s much easier to talk about ‘that fantastic TV’ or piece of jewellery than a £500 or £100 bonus.
Cash lacks the trophy value and social reinforcement attributes which increase the perceived value of the award over cash and because a merchandise programme such as Aspirations can be visualised by employees, it will trigger emotional responses that can be very powerful.
