In a recent edition of Performance Perspectives I offered up some
new slants on the old argument of which works better cash or non-cash. My thought process was based on a pragmatic premise: As companies look to maximize all of the resources available to them, the notion that cash offerings are better–especially in tough times—needed to be reexamined. I suggested that the appeal of non-cash awards was stronger than most compensation planners think and offered some ideas on where (and when) to inject non-cash awards into your total rewards mix.
Now I’d like to add another reason to use them—your CEO expects you to!
In PriceWaterHouse’s 14th Annual Global Survey published earlier this year, 65% of all the CEOs said they planned to use more non-financial rewards to motivate their employees. In that same poll 83% of those questioned said they also plan to make changes to their people management strategies—with over half of that group expecting those new initiatives to be “major” in scope.
Take notice, people—their retention and their motivation—are top of mind within the c-suite and the majority of chief executives realize that non-cash awards are an ideal mechanism in that pursuit.