This document discusses how non-monetary rewards and recognition can be used to improve employee performance and business profits. It argues that recognition forms an important part of performance management and that workers are more motivated by non-cash rewards than salary and benefits alone. The document provides examples of how measuring key performance indicators can be used to construct a return on investment for a rewards program and outlines techniques for effective communication to improve program uptake and participation.

1. Strategic
Reward and Recognition
Improving employee performance
through non-monetary incentives

2. ‘Organizations do not create profit.
People do.’
By rewarding and recognizing people you can create incremental profit
and add value far beyond the objective valuation of brands and products

3. How do rewards and recognition fit into
your business strategy?
• They form part of the total rewards
strategy
• Non-financial rewards complement
financial rewards
• Recognition is the first element of the
performance management plan
• People work harder for non-cash
rewards and recognition than they do
for salary and benefits

4. Why benefits do not deliver
performance improvement
• Herzberg’s two-factor theory
examined what elements of
policy/supervision create satisfaction
• Remuneration/benefits are more
likely to create dissatisfaction
• Achievement, recognition and the
work itself create the highest levels of
satisfaction
• Workers who are more satisfied tend
to be more engaged and perform
better

5. Non-cash reward and recognition has a
long history of psychological credibility
• From Freud’s ‘pleasure principle’
(1910) to Ford’s Motivation Systems
Theory (1992) there are many
practical applications for organizations
• Mayo’s worker interaction,
McClelland’s Achievement Theory
and Locke and Latham’s goal-setting
experiments are the key to better
performance
• But replicating results from theory
into practice is the main objective

6. How do you plan to deliver
better non-monetary reward and
recognition?
• The performance
improvement process (PIP) is
a tried and tested tool to plan
better employee programmes
• All employee and distributor
schemes benefit from this
approach
• The key element is
communication

7. Start with clarifying your
objectives
• Be clear about what you are
trying to achieve
• Ensure goals are compatible
or ‘salient’ as the theorists say
• Don’t try and do too much
with one programme
• But how do you produce a
business case that senior
management can approve?

8. Text

9. Constructing the ROI
• In the previous example a large US corporation justified its
recognition programme by measuring overall engagement
• They determined that the higher proportion of employees they had
who were ‘somewhat or completely disengaged’ the more profit
they lost on a predictable basis over the year
• Reducing the loss was the measure for success
• The same principle applies with any other measure of performance
such as absenteeism, recruitment, key task completion or even
leads generation
• The key element of any programme is to set a benchmark for
performance and then feedback any measurement on a regular
basis

10. The rewards in any budget are likely
to be no more than 60% of the total
• You need to allow for set-up
advice, promotion and online site
construction
• There will be a cost to monitor
participant progress and to send
out the rewards
• If they are employees there will be
a BIK (benefits in kind) tax to be
paid to HMRC

11. There are many tactical techniques
you can use to improve uptake and
involvement
• With a ‘fast-start’ you can offer
additional credits for
performance during the early
part of the programme
• This produces more ‘activity’
earlier and tends to create an
additional residue of activity at
the end
• The black shadow represents
extra performance as a result

12. Non-cash rewards depend on the
audience. But cash is never king.
• Although more cash is what
people say they want, they
actually improve their
performance more with non-
cash rewards
• Travel, either individual or in
groups, is the most sought after
reward
• Sports events are the least prized
of all non-cash awards

13. Better communication is what
most R&R programmes need
• Research shows that better
communication is the key to
more effective programmes
• Communication needs to
aspire towards empowerment
rather than top down
• Ownership of the comms leads
to ownership of the
tasks…management
intervention should be
minimal

14. Are there any examples of well-known organizations using R&R
programmes to improve performance and profits?
• Motivation is universal…there are many examples from most developed economies to
show that well-constructed programmes deliver real, bottom line results
• Volvo Cars UK recorded a 23% increase in sales over three months by chartering the
Orient Express for 50 Volvo dealers
• Lucent Technologies gathered 6,000 improvement ideas with a combined business
benefit of $20m
• AEG offered independent kitchen appliance retailers a place plus partner on an
incentive to Hong Kong which resulted in a 20% increase in like-for-like sales
• LV insurance improved its engagement from 64% to 83% over a four year period with a
formal recognition programme

15. ‘The deepest need in human nature is
the craving to be appreciated.’
William James, 19th century sociologist and thinker

16. Fisher’s grasp of the key issues makes this a perfect primer for
anyone wanting to know how to create and manage successful
incentive programmes. This book is set to become recommended
reading for our Motivation Diploma and we are happy to endorse it.
Chris Bestley, Education Consultant, Institute of Promotional
Marketing (IPM)
A great reference for any manager who has to run motivation
programmes
Simon Gilbert, Trade Marketing Manager, Sony Mobile
John Fisher has been an expert strategist and practitioner in the field
of staff motivation for more than 25 years. He is also an excellent
writer. The result is always an engaging read, combining real
education with valuable insights.
Martin Lewis, Managing Editor, Meetings & Incentive Travel
magazine

17. Discount Code:
SRAR25
(25% off RRP)

18. Thank you