Non-cash rewards are more effective than cash rewards for accelerating and reinforcing organizational behavior management (OBM) strategies. Presenters from Maritz, a leader in non-cash rewards, shared findings that non-cash awards capture more employee attention, require less monetary investment than cash to drive behavior change, and can reduce absenteeism by 29-52%. Effective non-cash reward programs should be 0.5-3% of payroll budgets and recognize excellence, incentivize goals, and foster engagement, feelings of purpose, and social connections among employees.

1. Non-Cash Rewards are best for
accelerating and reinforcing
OBM strategies
Patrick Carpenter │ GGOB
Chris Galloway │ 3Cheers!

2. The Winner’s Circle
• Session Goals
– Learn best practices for non cash rewards by the
market leader in non-cash rewards
– Give you the facts you need to justify increasing
your non cash rewards programs
– Support for the execution of your MiniGames™

3. Educate
(Think)
Empower
(Act)
Engage
(Feel)
We are here

4. Part of a Total Rewards StrategyNon-
cashand
Cash
RewardforPerformance
Lever Objective Program
Ownership
Target % -
Annual Pay
Recipients
(% of
Population)
Recognition
• Recognize and reward excellence
• Recruit and retain top performers
• Reinforce company values/ core
competencies
0.75 – 1.0%
of Total
Pay

Rewards
Incentive
Awards
• Incentivize achievement of short-term
business objectives
• Promote specific behaviors/activities
• Increase motivation and productivity to
well-above expected levels
1 – 2.5%
of Total Pay

Performance Comp
Incentive Pay
• Incentivize achievement of company
objectives
• Recruit and retain top talent
• Link individuals to business goals
9-30%
of Total Pay
(non-sales)

Salary
Base Comp
• Pay for performing job duties
• Ensure consistency in “meets
expectations” for objectives; baseline for
performance
• Recruit and retain talent
70-100%
of Total Pay

Benefits • Security Needs
• Work Environment 
Non-
cashCash

5. Connecting OBM to Rewards
Healthy OBM companies go beyond simple
recognition of the power of everyone
understanding the numbers. The top OBM
companies have locked-in on patterns of non-
cash rewards. And when non cash rewards are
executed well they reinforce everything good
about business – giving purpose to work and
connecting us with our fellow team members.
Maritz is to rewards and recognition as SRC is to
OBM. They practically invented the practice.

6. Topics
1. Goals of recognition
2. What makes recognition effective?
3. Why non-cash?
4. Measurable value of non-cash rewards
5. How to get started with implementing a
program

7. Why Recognize?
“You get a paycheck,
isn’t that enough?”

8. Recognition drives engagement
Meaningful recognition
causes a 14% increase in
employee engagement
and productivity.
Bersin & Assoc., 2012
When combined with OBM practices, this will result in:
• More games played AND won
• More profit to invest
• Self-funding for employee rewards
… resulting in even higher engagement!

9. Why Recognize?
You want:
More of a good thing / behavior
Consistent best effort – aka care
Know that you notice/care
Ownership/dedication/loyalty
… An Emotional Connection

10. Effective Recognition
Rational AND Emotional
Multiple Motivators
Individual AND Social
PeoplePrinciples

11. Bottom Line

12. Effective Recognition
It’s not just about
the rewards
• Purpose, authenticity
• Atmosphere for
appreciation
• Flexibility and style
• Personal, in person
• Non-cash rewards

13. Why focus on Rewards?
• Significant investment
– 90%+ of program cost
• Can work against you
– Entitlement
– Demotivating
– Decreasing loyalty
Choosing Non-Cash Rewards
WILL pay long-term dividends.
Why? …

16. What is a
social norm?

21. Proof Point #1
Source: Heyman and Ariely, 2004. “Effort for Payment: A Tale of Two Markets”

22. 101 159 168
162 169 168
Source: Heyman and Ariely, 2004. “Effort for Payment: A Tale of Two Markets”
Proof Point #1

23. Proof Point #2
1000
1200
1400
1600
1800
2000
30 60 90 120 150 180
Baseline Cash Bottle Origami
Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace”
5%
25%
30%
Number of Characters Entered

24. Proof Point #2
Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace”
+ =?
5%
Market Exchange
Low Effort
25%
Social Exchange
Medium Effort
30%
Really??

25. Proof Point #2
1000
1200
1400
1600
1800
2000
30 60 90 120 150 180
Baseline Choice Bottle
Source: University of Zurich 2011. “The Currency of Reciprocity – Gift-Exchange in the workplace”
25% 25%
Number of Characters Entered
Choice!

26. Other Findings
1. 2007 presentation by Scott, Jeffrey, Ph.D., entitled “From Art to Science: Why Tangible Non-Cash Rewards are More
Rewarding for You and Your Participants,”
2. Jeffrey, S. A., & Adomdza, G. K. (In Press). Incentive Salience And Improved Performance. Human Performance
3. Markham, S. E., Scott, K. D., & McKee, G. H. (2002). Recognizing Good Attendance: A Longitudinal, Quasi-Experimental Field
Study. Personnel Psychology, 55(3), 639-660
University of Chicago
2007 (1)
• 3X more cash to
drive behavior
than tangible
rewards
Human Performance
Research 2011 (2)
• Non-Cash Awards
capture more
employee attention
Field Study
2002 (3)
• 29% - 52% reduction
in absenteeism
3-for-1

27. How to get started
Program design
goes well beyond
providing a tool
and access to
rewards

28. Benchmarks
• Recognition budgets
should be between
0.5% and 3% of payroll
• Sales incentive prizes
are not included in this
budget (contra funds)

29. Handouts

30. Thank You for Attending!
Non-Cash Rewards are best for accelerating
and reinforcing OBM strategies
Presented by: Patrick Carpenter and Chris Galloway
Please fill out a session evaluation using the paper forms on the
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