Invest in the smile, make a difference.

While financial bonuses are often viewed as the ultimate way to recognize performance, research reveals something surprising: tangible rewards create 44% more lasting impact.

1. What makes tangible rewards so powerful?

• A personal touch
  A gift you can use or experience, like a luxury item, a trip, or a gift card, feels more personal than money. A well-chosen present shows genuine thought about what someone values.

• Longer-lasting memories
  While financial bonuses are often spent and forgotten quickly, the memory of a tangible reward lingers. Think of a practical smartwatch for fitness enthusiasts or an unforgettable trip for those who love to explore. When recipients use the gift or reflect on the experience, it reinforces their association with your company that made it possible.

• Stronger emotional connection
  Tangible rewards create an emotional connection. They evoke positive feelings that extend beyond the moment of receipt, strengthening the bond with your company.

Tip: Ask your teams which rewards inspire them most

If you're about to launch a new incentive program or are revamping an existing one, it's always good to ask your people first what would make them go the extra mile. Surveys, focus groups, or informal conversations can uncover valuable insights into their preferences and aspirations.

This approach creates a double impact: you gather first-hand data while generating excitement and buy-in for the program. The result? A motivational kick-start that maximizes engagement and sets the stage for lasting success. Programs designed with employee input aren’t just more impactful—they’re also more likely to deliver a measurable return on investment. Simple as that.

2. How to use tangible rewards effectively?

• Make it personal: Choose rewards that match the interests and preferences of your employees or partners. A team member who loves to travel, for instance, will likely appreciate a gift card for a weekend getaway over a generic gadget.

• Be consistent: Reward not just top performers but also those who contribute steadily to success. This increases the overall impact on your organization. After all, it’s all about ‘moving the middle.’

• Create a total experience: Pair rewards with a moment of recognition, such as a team acknowledgment or a personal message from the CEO.

3. The proof is in the numbers

According to the recent IRF Award Program Value Evidence study, non-financial rewards have 44% more impact on employee motivation and loyalty than financial incentives. This is because gifts and experiences are tangible symbols of appreciation and connection. They strengthen the emotional bond, leading to higher retention and long-term engagement.

Conclusion

Those who truly want to impact teams and motivate them long-term choose tangible rewards in incentive programs. These bring a smile to your people’s faces and provide a lasting sense of appreciation. Physical gifts enhance performance and boost loyalty. As a result, companies that opt for tangible rewards can significantly increase their ROI on motivation programs.

👉 Curious about what tangible rewards can do for your team? Let’s optimize your incentive program together. Connect, share your experiences, and gain an edge.

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