The Incentive Research Foundation has released their 2019 Industry Outlook on Merchandise, Gift Cards and Event Giving, revealing the following:
- Optimism for non-cash employee rewards and gift giving is high for 2019, primarily due to a strong economy
- The average spend per person is increasing, with 57% giving gifts between $1-250, with the average being $824.
- Over 70% of respondents use gifts in conjunction with incentive trips; the highest percentage
- The per-person spend for event gifts is: $100 median / $210 average
Types of rewards and event gifts companies are using:
Use of Non-Cash Incentives
There is considerable evidence supported by many IRF studies presenting the advantages of using non-cash incentives. While it’s widely assumed and reported that participants prefer cash, the evidence shows that employees work harder to achieve goals when tangible, non-cash incentives are offered. A few of the many advantages to offering tangible rewards include:
- Ability to reinforce the company brand and messaging by using merchandise from brands with similar attributes.
- Ability to adjust budgets when necessary (the value of a cash award is obvious)
- Merchandise offers a higher perceived value since it is usually purchased by the sponsoring company at a discount.
- Recipients are more likely to talk about the reward and associated accomplishment when the reward is tangible, providing residual value for both the sponsoring company and the recipient. Employees are less likely to share information about a cash reward.
- Tangible rewards are not easily confused with compensation.
“Reward and Recognize” appears on every list of ways in which to motivate employees. Non-cash rewards generate excitement and can be tied to corporate values, messaging and brand attributes, reinforcing the company culture.
Partner with an expert who can guide you through designing an effective employee performance program, consumer promotion or selecting gifts for your next event. Incentive Professionals will be able to share current research, what’s working in similar industries and the latest products that name-brand merchandise providers have to offer.