Why do noncash rewards motivate better than cash?
A. In today’s business environment, two types of rewards exist – “sticky” and “slippery.” Sticky rewards are memorable or, in other words, they “stick” in the recipient’s mind and reinforce the relationship between the reward earner and the reward provider. Slippery rewards, on the other hand, have a fleeting impact and often “slip” the recipient’s mind. Cash – unfortunately for those companies that attempt to motivate employees and distribution partners using this commodity – is the most “slippery” type of reward because it’s typically confused with other compensation and therefore forgotten. That said, let us recap additional reasons why “sticky” noncash rewards motivate individuals to higher levels of performance than “slippery” cash rewards …
