Question

1. Why might be the incentives in the form of gift certificates be better than just providing cash to employees?

2. What are some of the advantages or disadvantages of a sales intensive program in which the top performers receive a trip or a larger reward, while other sales individuals receive lesser or different types or rewards?

-Principles of Humans Resources.

Answer 1

1) Gift Certificate is a piece of paper that is bought from a store and is given to someone. Gift certificates entitles the holder to exchange it for the goods.

Incentives in the form of gifts certificates is better than just providing cash to employees for the following reasons:

• In case cash incentive ig given, it is more likely that employees will use it to pay groceries/bills.
• Gift certificates being a non-monetary rewards are more motivating compared to cash rewards.
• Gift Certificates are used by employees for themselves in a more meaningful way.
• It is more appreciated by employees.

2) Advantages and disadvantages of a sales intensive program in which the top performers receive a trip or larger reward, while other sales individuals receive lesser or different types or rewards are:

Advantages:

• This type of sale incentive program promotes better performance among the employees.
• It act as a motivating factor. Employees are motivated to perform better and improve so as to receive larger reward.

Disadvantages:

• This is against the work culture.
• It can create jealousy among the employees.
• While following this incentive program, employees who are above average performance can devalue their efforts.
• It can create cut throat competition.
• Though it act as a motivating factor but it can discourage employees if they feel that they don't stand a chance.