Non-cash Incentives: How Effective Are They in Canadian Organizations?

The current operating environment, characterized by mandates to control costs, challenges organizations to find innovative ways to reward their employees. Motivational and compensation research indicates that money is not an employee’s primary motivation to work; firms, therefore, are turning to the practice of non-cash incentives such as incentive travel. This research examines the effectiveness of incentive travel in a Canadian context. It includes an assessment of the advantages and disadvantages of incentive travel from three perspectives: corporate (management/meeting planner), employee, and industry. As well, it considers incentive travel and motivation, evaluates a program at Company X, and discusses practical implications, providing advice on how to design a motivating program.

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