1. Research paper
Rewards and
Recognition
HR Perspectives on Non-Cash
Rewards and Recognition in
the New Economy
Sponsored by
www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
WP_IHR_HRPerspectivesNnCshRwrdsRec.indd

2. Research paper
HR Perspectives on Non-Cash Rewards and Recognition
in the New Economy
Rewards and
Recognition Introduction
It is no secret that the great recession has resulted in a significantly different structure in the
corporate landscape. The economy has led to many organizations with stalled partnerships,
smaller footprints, and jagged growth curves. On the inside, rapidly changing corporate
directives, fewer resources, and a smaller workforce challenge most corporate initiatives. This
environment raises a number of questions from an HR perspective. Has the HR motivation
toolbox changed? And if so, to what extent do non-cash rewards and recognition fit in to this
tool box?
IHR Research Paper
Recent studies by McKinsey, Aberdeen and others seem to indicate an increasing focus from
executive and sales management on non-cash rewards and recognition. McKinsey’s recent
report Motivating People; Getting Beyond Money openly challenges the traditional thinking
of cash as the end all motivator. The report finds strongly in favor of non-cash motivators
(including praise from immediate managers), and lists these motivators as being more effective
than the three highest-rated financial incentives (i.e., cash bonuses, increased base pay, and
stock options).1 Likewise, Aberdeen research found that Best-in-Class companies (i.e. those
with the highest financial and operational results) were more than twice as likely as all other
firms to provide non cash incentives, with 21% of Best-in-Class organizations highly utilizing
them versus 10% of all other companies.2
The effectiveness of various non-cash reward and recognition strategies from an HR perspective,
the structure of the programs and corporate support thereof was the subject of a 2012 survey
by HR.com targeted at HR owners of non-cash reward and recognition programs.
High Level Findings:
• Although non-cash reward and recognition programs are frequently sponsored at the
corporate level and the HR function is the primary champion of all-employee programs,
HR has been slow to become the true corporate-wide strategic partner for non-cash
rewards. HR respondents reported that they only represent 50 to 80% of the overall
non-cash R&R spend.
• Sourcing for non-cash rewards remains broad-based, with organizations partnering across
many types of providers and intermediaries. Promotional product companies, recognition
companies, incentive companies, and retail stores remain the go-to sources for
non-cash awards.
• Print communications, websites, and in-house administrators are the primary means of
program support and awareness.
• The perceived effectiveness of various non-cash motivators changes depending on the
organizational goal (engagement, sales, productivity).
• Cost/Benefit Information was the most often cited information that could help “sell”
reward and recognition internally.
1 https://www.mckinseyquarterly.com/Motivating_people_Getting_beyond_money_2460
2 http://theirf.org/research/content/6085642/rewards-and-recognition-as-a-vital-compensation-component/
www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
2

3. Research paper
HR Perspectives on Non-Cash Rewards and Recognition
in the New Economy
2. Methodology and Sample Population
Rewards and
Methodology and Sample Population
Recognition The study was fielded
electronically instudyspring of electronically in the spring of 2012251 Responses with members
The the was fielded Diagram 1: to the majority of HR.com Planning
and received 603 responses, giving it a 99% confidence level with a +/-5% confidence interval.
2012 to the majority of HR.com Responsibility
members and received 603 Responses with Planning Responsibility
Diagram 1: 251
responses, giving it a 99% Travel Only
1% Travel + R&R
confidence level with a +/-5% 20%
confidence interval.
IHR Research Paper
Of these 603 respondents,
approximately 67% had formal
non-cash reward and recognition
programs or incentive travel
programs. Of the 401 R&R Only
79%
respondents with programs, 251
had either direct or indirect planning duties in either the non-cash reward and recognition programs or
Of these 603 respondents, approximately 67% had formal non-cash reward and recognition
incentive travel programs. Duetravel programs. Of the 401 respondents with programs, 251 had responses,
programs or incentive to the limited number of travel-related program owner either
limited conclusions on incentive travel could either the non-cash reward and The data does however
direct or indirect planning duties in be extracted from the data. recognition programs
support the or incentive travel understanding that the HR function of travel-relatedrole in the planning and
commonly held programs. Due to the limited number has a limited program owner
responses, limited conclusions on incentive travel could be extracted from the data. The data
use of incentive travel in most organizations. The sample population was also a broad, general
does however support the commonly held understanding that the HR function has a limited role
reflection ofin themarket in both industry and organizational size.
the planning and use of incentive travel in most organizations. The sample population was
also a broad, general reflection of the market in both industry and organizational size.
Diagram 2: Respondents by Industry
Diagram 2: Respondents by Industry
Media and
Hospitality Entertain.
2% Travel 2%
1%
Services
Other
Ag/Mining 15%
12%
2%
Construction
4% Manufacturing
13%
Education
7%
Finance
8%
Transportation NonProfit
2% 7%
Gov't
8% Health Retail
8% 3%
Telecom
 Wholesale 5%
1%
www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 2 3

4. Research paper
HR Perspectives on Non-Cash Rewards and Recognition
Diagram 3: % of Respondents by Employer
in the New Economy
Rewards and
Size
Recognition Diagram 3: % of Respondents by Employer Size
13% 8%
1 to 19 employees
7% 18% 20 to 99 employees
100 to 499 employees
500 to 999 employees
18% 1000 to 4999 employees
IHR Research Paper
5000 to 9999 employees
25% 10,000+
11%
Benchmarking the Sponsorship of Non-Cash Reward
and Recognition Programs
As the landscape for ownership of many organizational initiatives has changed in the last five
to eight years, one of the focal points of the study was to understand and benchmark where
sponsorship for non-cash reward and recognition programs resonates in the new economy.
3. Benchmarking the Sponsorship of 4 reveals, non-cash reward andrecognition programs receive a surprisingly large
As Diagram Non-Cash Reward and
Recognition Programs amount of sponsorship at the corporate level with 73% of respondents noting that their non-
cash reward and recognition programs have corporate sponsorship. This is a notable change to
As the landscape for ownership of the primarily dispersed and divisional reward programs prevalent in the 1990’s. It also reflects
the consolidated decision-making and efficiency efforts of many modern organizations.
many organizational initiatives has
changed in the last five to eight years, Diagram 4: At What Level Are
one of the focal points of the study Non-Cash R&R Programs
Diagram 4: At What Level Are Non-Cash R&R Programs Sponsored
was to understand and benchmark
where sponsorship for non-cash Sponsored?
73%
reward and recognition programs
resonates in the new economy. As 39% 36%
Diagram 4 reveals, non-cash reward
and recognition programs receive a
surprisingly large amount of Corporate Division Department
sponsorship at the corporate level
with 73% of respondents noting that
their non-cash reward and
Additionally, as Diagram 5 shows, the HR organization does continue to play a significant and
recognition programs have corporate sponsorship. This role notableorganization and sponsorship of non-cash reward and recognition
predominant
is a in the change to the primarily dispersed
and divisional reward programs prevalent programs with It also88% of respondents revealing that the HR department is one of the key
in the 1990’s. over reflects the consolidated decision-
making and efficiency efforts of many modern organizations. and organizers of reward and recognition programs. Less than 20% of
budgetary sponsors
respondents reported having non-cash reward and recognition programs also sponsored in the
Additionally, as Diagram 5 shows, the sales and marketing departments.
HR organization does continue to play
a significant and predominant role in
Diagram 5: HR Department is
the organization and sponsorship of Key Sponsor
Non-Cash Rewards and Recognition in the New Economy: An HR Perspective
non-cash reward and recognition 3
programs with over 88% of www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
88%
respondents revealing that the HR 14% 16% 6% 1% 4
1%
department is one of the key
budgetary sponsors and organizers of
t
t

5. sh reward and
programs have corporate sponsorship. This is a notable change to the primarily dispersed
Research It also
al reward programs prevalent in the 1990’s.paper reflects the consolidated decision-
efficiency efforts of many modern organizations.
, as Diagram 5 shows, the
tion does continue to play HR Perspectives on Non-Cash Rewards and Recognition
and predominant role in in the New 5: HR Department is
Diagram Economy
tion and sponsorshipand
Rewards of Key Sponsor
Diagram 5: HR Department is Key Sponsor
Recognition
ward and recognition
th over 88% of 88%
revealing that the HR 14% 16% 6% 1%
1%
is one of the key
ponsors and organizers of
pt
ow
pt
t
t
pt
ep
ep
De
recognition programs.
De
De
kn
gD
sD
HR
el
gs
t
le
n'
tin
av
ti n
% of respondents
Sa
Do
ke
Tr
ee
ar
M
M
ving non-cash reward and
IHR Research Paper
programs also sponsored
and marketing Benchmarking Resources for Non-Cash Reward and
s.
Recognition Programs: Budget and Support
At a time when US organizations are sitting on an estimated $1.6 trillion worth of capital
reserves, it would not be surprising to find that non-cash reward and recognition programs have
been slowly drained of budgetary and support resources. According to respondents however,
as seen in Diagram 6, this has not happened. Ranges in terms of budget size varied from
$50,000 to over $5 million. Not surprisingly however, the size of the budget varied by the
size of the organization, with 100% of organization with less than 20 employees reporting a
$50,000 or smaller budget and larger organizations claiming the larger annual expenditures.
-Cash Rewards and Recognition in the New Economy: An HRwas that although respondents were program decision makers, the
More interesting however, Perspective 4
majority of them identified that the budget amount they listed only represented between 50%
and 80% of their estimate of the corporation’s actual overall spend. (Table 1) This could speak
marking Resources for Non-Cash Reward and Recognition
either to the wide amount of individual spending that happens at various levels of management
or to the unknown amounts represented in the sales and marketing divisions discussed above.
ms: Budget and Support It is, however, another indicator that HR still may have more ground to cover in becoming the
primary strategic partner for all reward and recognition initiatives.
US organizations are Diagram 6: Expenditure on Non-Cash R&R
Diagram 6: Expenditure on Non-Cash R&R
timated $1.6 trillion
reserves, it would not 17%
find that non-cash 2%
< $50,000
$50,001 +
ognition programs have 0%
$100,001 +
0%
ined of budgetary and 3%
$250,001+
$500,001 +
ces. According to 2% 48%
$1,000,001 +
wever, as seen in 3% $2,000,001 +
$3,000,001 +
has not happened. 5%
$4,000,001 +
s of budget size varied > $5,000,000
o over $5 million. Not 8% Don't know
wever, the size of the 12%
y the size of the
ith a 100% of organization with less than 20 employees reporting a $50,000 or smaller
er organizations claiming the larger annual expenditures. More interesting however,
gh respondents were program decision makers, the majority |of them identified that the
www.hr.com 1-877-472-6648 copyright © HR.com July 2012
they listed only represented between 50% and 80% of their estimate of the 5
ctual overall spend. (Table 1) This could speak either to the wide amount of individual

6. Research paper
HR Perspectives on Non-Cash Rewards and Recognition
in the New Economy
Rewards and
Table 1 Budget Size: Percent of Respondents by Organization Size
Recognition
that Reported the According
Size of Organization <$50k $50k+ $100k+ $250k+ $500k+ $1MM+ $2MM+ $4MM+ $5MM+
1-19 Employees 100% 0% 0% 0% 0% 0% 0% 0% 0%
20-99 Employees 77% 6% 3% 3% 0% 0% 3% 0% 0%
100-499 Employees 58% 14% 11% 1% 3% 1% 0% 0% 0%
500-999 Employees 44% 17% 3% 8% 3% 3% 0% 0% 0%
1,000-4999 Employees 40% 13% 13% 9% 4% 0% 4% 0% 0%
IHR Research Paper
5,000-9999 Employees 18% 18% 24% 6% 0% 6% 6% 0% 6%
10,0000+ Employees 8% 5% 3% 8% 8% 5% 11% 3% 11%
Although the HR respondents acknowledged that their program spend represented only a
portion of the overall R&R outlay, they were also unified that their budgets go primarily to
non-sales employee recognition and rewards. When asked, “What percent of your overall non-
cash reward and recognition expenditure goes for the following program types?”, an average
of 67% of the spend went to non-sales employee recognition rewards, 18% went to sales
awards, 12% went to business gifts and only 3% of the budget went to dealer incentives.
Once again, these numbers most likely represent the focal point of HR responsibilities versus the
spend that occurs in the sales or marketing organization for sales and channel programs. Also
of important note is that these budgetary resources are used not only for rewards, but also for a
variety of other program elements. Sixty percent of respondents reported that their organization
supports non-cash reward and recognition programs with print communications, 40% reported
supporting their programs with a program website, and nearly 40% support their programs
with dedicated in-house administrators. Mobile applications and outside administrative support
were used by less than 10% of respondents.
Although the HR respondents
cknowledged that their program Diagram 7: % of Budget Represented
pend represented only a portion Diagram 7: Smaller Budgets RepresentSmaller Portion of Overall Spend
Smaller Budgets Represent Smaller Portion
of the overall R&R outlay, they of Overall Spend
were also unified that their
100
budgets go primarily to non-sales 90
employee recognition and 80
70
ewards. When asked, “What 60
percent of your overall non-cash 50
40
eward and recognition 30
20
expenditure goes for the 10
ollowing program types?”, an 0
verage of 67% of the spend went
+
+
+
+
0
1+
w
+
+
+
M
M
M
M
0
01
01
01
no
00
,0
M
M
M
M
,0
,0
,0
50
tk
0,
$1
$2
$4
$5
00
50
00
<$
$5
no
o non-sales employee
$1
$2
$5
Do
ecognition rewards, 18% went
o sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once
gain, these numbers most likely represent the focal point of HR responsibilities versus the spend that
occurs in the sales or marketing organization for sales and channel programs. Also of important note is
hat these budgetary resources are used not only for rewards, but for a variety of other program
www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
elements. Sixty percent of
espondents reported that their 6
organization supports non-cash Diagram 8: Methods Used to Support

7. recognition rewards, 18% went
to sales awards, 12% went to business gifts and only 3% of the budget went to dealer incentives. Once
again, these numbers most likely represent the focal point of HR responsibilities versus the spend that
Research paper
occurs in the sales or marketing organization for sales and channel programs. Also of important note is
that these budgetary resources are used not only for rewards, but for a variety of other program
elements. Sixty percent of HR Perspectives on Non-Cash Rewards and Recognition
respondents reported that their
in theDiagram 8: Methods Used to Support
New Economy
organization supports non-cash
Rewards and
reward and recognition Diagram 8: Methods UsedPrograms to Support Programs
Recognition
programs with print
Other
communications, 40% reported
Outs i de Admi ni s tra ti ve Support
supporting their programs with
Dedi ca ted In-Hous e Admi ni s tra tors
a program website, and nearly
Mobi l e Appl i ca ti on for Progra m
40% support their programs
Integra ti on wi th Soci a l Medi a
with dedicated in-house
Progra m Tra i ni ng
administrators. Mobile
Progra m Webs i te
IHR Research Paper
applications and outside
Pri nt Communi ca ti ons
administrative support were
0% 10% 20% 30% 40% 50% 60% 70%
used by less than 10% of
respondents.
Effectiveness of Non-Cash Motivators Varies by
Organizational Goal
With resources, both budgetary and administrative, relatively scarce over the last few years,
many organizations have taken the opportunity to re-evaluate the effectiveness of various tools
and recalibrate where needed. The same can be said of non-cash reward and recognition
5. Effectiveness of Non-Cash Motivators Varies by Organizational Goal
programs. As Diagram 9-11 show, when asked how effective various non-cash reward and
recognition tools were in increasing engagement, sales, and productivity within the modern
organization, the HR perspective varied markedly in both magnitude and in type depending on
With resources, both
the target population.
budgetary and administrative,and Recognition in the9: Non-Cash R&RHR Perspective in
Non-Cash Rewards Diagram New Economy: An Effectiveness 6
relatively scarce over the last Increasing Engagement
Diagram 9: Non-Cash R&R Effectiveness in Increasing Engagement
few years, many
organizations have taken the 70%
60%
opportunity to re-evaluate
50%
the effectiveness of various
40%
tools and recalibrate where 30%
Extremely effective
needed. The same can be 20%
Effective
said of non-cash reward and 10%
0%
recognition programs. As
s
el
s
e
es
ch
m
l
d
ve
dis
av
it e
Diagram 9-11 show, when
ar
l
er
gib
ra
Tr
an
tc
M
en
rT
n
ch
bi
or
ta
fo
k
De
er
sf
To
In
asked how effective various
s
M
rd
rd
ca
Ca
ft
ft
non-cash reward and
Gi
Gi
recognition tools were in
increasing engagement, sales, and productivity within the modern organization, the HR perspective
As seen in Diagram 9, HR owners of non-cash reward and recognition programs were very
varied markedly in both magnitude and in type dependingnon-cashtarget population. engagement within their organizations.
positive about the role on the awards play in elevating
Almost 70% reported that in their experience Gift Cards for merchandise were either extremely
As seen in Diagram 9, HR owners of non-cash reward andat increasing engagementwere very positive about Just over 60% of
effective or effective recognition programs within their organizations.
respondents reported that intangibles such as time off, reserved parking spaces, etc. were in
the role non-cash awards play in elevating engagement within their organizations. Almost 70% reported
their experience either effective or highly effective in increasing engagement. Nearly half felt
that in their experience Gift Cards for merchandise were either extremely effective or effectivethird found debit cards, token
that merchandise was effective or highly effective. Less than a at
increasing engagement within their organizations. effective or60% of respondents increasing engagement.
items or travel Just over extremely effective at reported that
intangibles such as time off,
reserved parking spaces, etc. www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
were in their experience either Diagram 10: More than Half Feel
7
effective or highly effective in Intangibles Effective At Increasing
increasing engagement. Nearly

8. n in Diagram 9, HR owners of non-cash reward and recognition programs were very positive about
e non-cash awards play in elevating engagement within their organizations. Almost 70% reported
Research paper
their experience Gift Cards for merchandise were either extremely effective or effective at
ing engagement within their organizations. Just over 60% of respondents reported that
bles such as time off,
HR Perspectives on Non-Cash Rewards and Recognition
ed parking spaces, etc.
n their experience either
in the New Economy than Half Feel
Diagram 10: More
Rewards and
ve or highly effective in Diagram 10: More Effective At Increasing
Intangibles than Half Feel Intangibles Effective At Increasing
Recognition
ing engagement. Nearly Productivity
Productivity
t that merchandise was
ve or highly effective. 60%
an a third found debit 40%
token items or travel
20%
ve or extremely effective Extremely effective
easing engagement. 0%
Effective
s
el
ds
e
es
IHR Research Paper
ch
m
el
dis
av
te
av
ar
ibl
er
Tr
an
tc
ni
Tr
ng
M
ram 10, the effectiveness
ch
ke
bi
or
ta
or
De
er
To
In
sf
sf
M
e tools changed when
rd
rd
Ca
Ca
ft
ft
us was productivity
Gi
Gi
half felt that intangibles were highly effective at increasing productivity and close to half felt the same
engagement. More than
regarding gift cards.Diagram 10, the effectiveness of these tools changed when the focus was productivity versus
In
engagement. More than half felt that intangibles were highly effective at increasing productivity
Lastly, the scale and perceived effectiveness regarding gift cards. motivators shifted again when the
and close to half felt the same of various non-cash
Non-Cash Rewards and Recognition in themotivating sales. An HR Perspective owners felt that gift cards for
organizational focus was New Economy: Overall, HR program 7
Lastly, the scale and perceived effectiveness of various non-cash motivators shifted again
merchandise, intangibles and travel were the was motivating sales. Overall, HR program owners felt that
when the organizational focus most effective non-cash motivators for increasing sales.
Of important note, between 30 and 50% of respondents stated they don’teffective non-cashthese tools are
gift cards for merchandise, intangibles and travel were the most know whether motivators
for increasing sales. Of important note, between 30 and 50% of respondents stated they
effective with sales, or that it is not applicable to their organization. This seems to reiterate that HR
don’t know whether these tools are effective with sales, or that it is not applicable to their
could be a more effective partner within to reiterate that HR could be a more effective partner within their
organization. This seems their organizations if they understood the implications of non-
cash reward and recognition for they understood the implications of non-cash reward and recognition for
organizations if multiple populations and goals.
multiple populations and goals.

Diagram 11: Intangibles and Gift Cards seen as
Diagram 11: Intangibles and Gift Cards seen as Most Effective for
Most Effective for Motivation SALES
Motivation SALES
35%
30%
25%
20%
15%
10% Extremely effective
5%
0% Effective
s
el
ds
e
es
ch
m
l
dis
ve
av
te
ar
l
er
gib
t ra
Tr
an
tc
ni
M
n
ch
ke
bi
or
ta
or
De
er
sf
To
In
sf
M
rd
rd
Ca
ca
ft
ft
Gi
Gi
www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
8

9. Research paper
6. Sourcing Non-Cash Reward and Recognition Tools
The last several yearsPerspectives on Non-Cash Rewards and Recognition
HR have also
brought a very strong push by many
in the New Economy Diagram 12: Gift Cards Sourced from
larger organizations to consolidate
Rewards and
Sourcing Non-Cash Reward andRecognition Co,Tools
spending and sourcing decisions
Recognition
Retail Stores, Recognition Incentive Co,
primarily through the procurement and Internet
The last several years have also brought a very strong push by many larger organizations to
department. Such efforts certainly sourcing decisions primarily through the procurement department.
consolidate spending and 20% 25% 35%
5%
also 20% a change
prove to place downward pressure to place downward pressure on prices, but can5% lead to10% 13%
Such efforts certainly prove
14%
on prices, but can alsolandscape a successful provider partners. When asked from where various non-cash 7%
in the lead to of 9%
l A ny
y
resources were sourced, the answer was dispersed and dependent on the award type. In the
.
nc
re
Co
pa
change in the landscape 35% of respondents had sourced gift cards for their programs from retail stores,
last year, of
l
et
ve
cy
ge
to
m
on
rn
tra
en
il S
r
rp e Co
.
de
te
a..
r
iti
..
Ag
he
ve
ta
successful provider partners. When through recognition companies, and a fifth had used an incentive
ct
In
is.
gn
25% had purchased them
or
uf
cing Non-Cash Reward and Recognition Diagram 13 shows, respondent’s sourced merchandise for non-
Tools
Re
tiv
Ot
ra
re
Ad
sD
co
an
ail
.T
Di
en
asked from where various non-cash As
company or the Internet.
Re
m
ct
M
c
du
In
m
IHR Research Paper
Co
cash reward and recognition programs from arguably different sources. In the last year, almost
fro
ro
op
resources were sourced, respondents had purchased merchandise from a promotional products organization,
a third of the answer
ct
veral years have also
re
om
Di
Pr
was dispersed and dependent on a recognition company, over 20% had used a retail store, and a fifth
very strong push by many
over a quarter had used
the award type. In the last year,12: Gift Cards Sourced from
Diagram
had once again used an incentive company.
nizations to consolidate
DiagramStores, Recognition Co, Incentive Co,
Retail 12: Gift
nd sourcing decisions of respondents had sourced Cards Sourced from Retail Stores, Recognition Co, Incentive
35%
Co, and Internet
hrough the procurement for their programs from and Internet
gift cards
retail stores, 25% had purchased them through recognition companies, and a fifth had used an incentive
nt. Such efforts certainly
20% 25% 35%
ace downward pressure or the internet. As Diagram 13 shows, respondent’s sourced merchandise for non-cash reward
company 5%
5% 20% 10%
13%
7% 14% 9%
but can also lead to a recognition programs from arguably different sources. In the last year, almost a third of
and
l A ny
y
he landscape of respondents had purchased merchandise from a promotional products organization, over a quarter had
.
nc
re
Co
pa
l
A d ne t
ve
cy
ge
to
m
on
tra
en
il S
r
r
rp e Co
.
de
te
provider partners.used a recognition company, over 20% had used a retail store, and a fifth had once again used an
a..
r
iti
..
Ag
he
ve
ta
When
ct
In
is.
gn
or
uf
Re
tiv
Ot
ra
re
sD
co
an
ail
.T
Di
en
m where various non-cash company.
incentive
Re
m
ct
M
c
du
In
m
Co
fro
ro
op
were sourced, the answer
ct
re
om
Di
Pr
sed and dependent on
Diagram 13: Merchandise Sourced Mainly
type. In the last year,
pondents had sourced from Promo Dist, Recognition Co,
Diagram 13: Merchandise Sourced Mainly from Promo Dist, Recognition Co,
or their programs from Incentive Co, and Retail Store
Incentive Co, and Retail Store
s, 25% had purchased them through recognition companies, and a fifth had used an incentive
r the internet. As Diagram 13 shows, respondent’s sourced merchandise for non-cash reward 30%
28%
nition programs from arguably different sources. In the last year, almost a third of
20% 22%
19% 17%
16%
ts had purchased merchandise from a promotional products organization, over a quarter had 10%
3% 6%
3%
ognition company, over 20% had used a retail store, and a fifth had once again used an
ompany.
cy
et
r
re
.
er
l
he
Co
ve
c..
en
rn
.
to
om or d
l ..
. ..
...
Ot
tra
du
te
on
Ag
il S
Co e Co
ve
m
ro
In
ail
ct
iti
ta
Ad
fro
ra
op
re
Diagram 13: Merchandise Sourced Mainly
gn
M
Re
tiv
.T
ct
Di
co
en
rp
re
Re
c
Pr
Di
In
from Promo Dist, Recognition Co,
Incentive Co, and Retail Store
Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 9
28% 30%
22% www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
20% 19% 17%
16%
10% 6% 9
3% 3%

10. Research paper
7. Turning the Tide: A View In To “Making the Case”
As noted in the first part of the paper, a third of respondents reported not having a known non-cash
HR Perspectives on Non-Cash Rewards and Recognition
reward and recognition program within their organization. These respondents offer an important view
in the New Economy
into the lack of acceptance of non-cash rewards and recognition within organizations. They also offer
Rewards and insight into what information might help raise the perceived level of effectiveness of non-
interesting
Recognition Turning the Tide: A View In To “Making the Case”
cash reward and recognition and what tools are needed to get there. To that point, when asked, only
35% said there was “nothing” that could bepart of to help theirthird of respondents reported not having a and
As noted in the first done the paper, a organization accept non-cash reward known
non-cash reward and recognition program within their organization. These respondents offer
recognition as a motivational tool.
an important view into the lack of acceptance of non-cash rewards and recognition within
Almost 60% of respondents said that morealso offer interesting insight and benefits of non-cash reward and
organizations. They information on the cost into what information might help raise the
perceived level of effectiveness of non-cash reward and recognition and what tools are needed
recognition programs would help build the case for these tools. Almostsaid there was “nothing” more
to get there. To that point, when asked, only 35%
half said they needed that could be
information to help management embrace non-cashaccept non-cash reward and programs as a motivational tool.
done to help their organization reward and recognition recognition as motivation
tools. Forty-five percent reported it was more information on administration and fair application that
IHR Research Paper
would help build the case. Not 60% of respondents said thatneeded more budgetthe run aand benefits of non-
Almost surprisingly, 43% said they more information on to cost program.
cash reward and recognition programs would help build the case for these tools. Almost
Interestingly, close to a thirdsaid they needed more information reward management embrace non-cash reward and
half said that in order for non-cash to help and recognition programs to work
within their organizationrecognition programs as motivation tools. Forty-five percent reported it was more information
they would need a different corporate culture all together.
on administration and fair application that would help build the case. Not surprisingly, 43% said
they needed more budget to run a program. Interestingly, close to a third said that in order for
Diagram 14: For Those Without
non-cash reward and recognition programs to work within their organization they would need
a different corporate culture all together.

Programs, What Would Help?
Diagram 14: For Those Without Programs, What Would Help?
45% 58% 45% 27% 47% 43% 33% 6% 5% 35%
No er
g
et
l In e
in
h
st
ur
M fo o plic ts
dg
n
Ot
s
th
em gal n
tio
t A sue
pa
fi
.
es Cult
io
Bu
t..
ne
at
n f o n C istra
ep
Is
Di o re
Fa /Be
su ent
cc
sfu
in
M
t
Ap
r
os
Le
M e In Adm
ffe
en
ir
n
cc
n
M on
M oo
Un
fo
ag
n
eI
nf
o
an
or
eI
or
eI
or
lp
or
M
He
to
fo
In
Non-Cash Rewards and Recognition in the New Economy: An HR Perspective 10
www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
10

11. Research paper
HR Perspectives on Non-Cash Rewards and Recognition
in the New Economy
Rewards and
Recognition Conclusions
Although recent economic years have been tumultuous, non-cash reward and recognition tools
remain an important component of the HR toolbox. A high rate of overall market usage (67%),
prevalent corporate support, sourcing partnerships evident in numerous market areas, and solid
budgets seem to be strong indicators of non-cash reward and recognition’s emerging role of
importance in the new economy. Likewise, as programs have recalibrated from previous years,
HR seems to have a more unified opinion on the effectiveness of these tools for increasing
engagement, productivity and sales. However, the low rate of insight into sales and marketing
efforts, the high rate of divisional programs, and the failure to sometimes represent more than
IHR Research Paper
50% of the corporate spend, show that HR still has room to grow if it is to be a true strategic
partner for non-cash rewards and recognition across the enterprise. Elevating HR to this level
will, in turn, only lead to more effective programs, and likewise a more productive, engaged
workforce.
www.hr.com | 1-877-472-6648 copyright © HR.com July 2012
11