Experiential Rewards: Go For The Money Or The Memory?

A group of employees from a not-for-profitsolo or group experiences as employee gifts have
organization in Port Moody, BC recently foundrecently started to emerge; a typical company will
themselves suspended 30 metres above aoffer more than 300 activities. This industry has seen
whitewater river between Blackcomb and Whistlerconsiderable growth throughout North America in the
mountains. They performed aerobatics, turned upsidepast two years.
down, and flew along at speed of up to 80 kilometresIt is clear that giving employees free opportunities for
per hour on a wire. Their employer had not set up theexcitement and outdoor adventure can have many
experience as a team-building exercise or apositive benefits, both at an individual and growth level.
morale-boosting event. Instead, it was a way to say:Such experiences not only provide valuable exercise,
"thank you."fresh air, and a chance for self-discovery and personal
Today, when developing employee incentive programs,growth, but they can build morale, boost company
more employers are choosing healthy, outdoorloyalty, and reduce stress.
adventures as experiential rewards, rather than cash.Non-cash incentives boost performance more than
These can range from a day of whitewater rafting orcash, says study
skiing to solo indoor mountain climbing or a kayakYet proponents of cash rewards still argue that such
canoe excursion.programs are easy to administer, recipients can
Do employees appreciate such a healthy gift insteadchoose what to do with the money, and, according to
of cash? One who participated in the above eventalmost every study of employee attitudes towards
commented: "We had a perfect day. [It was] a greatincentive programs, employees invariably say they
bonding experience for the staff and the weather waswant it. No one can deny that cash makes a highly
fantastic." The activity itself cost less than $100 pereffective form of compensation: people want payment
employee.for doing their job. But when it comes to rewarding
Employee involvement in healthful, activity-basedhard-working employees for going above and beyond,
incentives produces long memories of strong, positivea wise organization needs to show some creativity in
feelings, according to a 2004 study by the Maritzhow it demonstrates its appreciation.
Travel Company in the U.S. The study revealed thatRecent research conducted by the University of
this proves doubly true when employees have theChicago argued that what employees say they want
opportunity to share their reward with family, friends orand what they actually work hardest to receive do not
colleagues.always match. In fact, the study showed that while
Sales team seeks rewards it truly wantsparticipants working towards a cash incentive boosted
Locally, a North Vancouver recruitment company wastheir performance by 14.6 per cent, those who worked
searching for a way to increase the pre-sales activitytowards a non-cash incentive of the same value
of its sales teams. For years, it has rewardedimproved performance by 38.6 per cent.
employees with cash bonuses for completed sales;From a company's perspective, this has potentially
however, it found that once targets had been reached,serious longer-term implications when considering
additional sales calls fell off, resulting in a loss ofmorale and employee retention. The 2004 Maritz
potential sales.Travel Company study reported that cash, when given
The organization needed a way to give employees anas a reward bonus is often forgotten and, if not
incentive to make extra calls and follow more tenuousconsidered large enough by the recipient, might actually
leads. It decided on a program that allowed all saleshave a negative impact.
team employees to work towards rewards that theyIn contrast, experiential employee rewards can create
truly wanted. This involved activities that they might notlifelong memories and positive feelings. Therefore, as
have done otherwise done, such as driving acompanies continue to fight to attract and retain quality
NASCAR race car, taking a flying lesson or gettingemployees, incentives that go beyond the ordinary will
first-night tickets to the theatre.likely grow more attractive. After all, what better way
Traditionally, companies that specialize in products andto say "thank you" a key employee or department for
merchandise have looked after rewards anda job well done than to give them their own special
incentives, while event companies overseeday to remember?
team-building events. However, companies that offer