Incentive travel can be a powerful motivator for employees, helping to drive business results. However, convincing your C-Suite of the value of incentive travel during tough economic times can be challenging. If you're looking for tips on making a case for incentive travel, read on. This article will outline key points you can use to make your argument persuasive. First, we'll discuss the economics of non-cash rewards. Then, we'll look at the psychology of how motivation matters in a recession. During inflationary times, rewards that trigger feelings might cost less while they deliver a greater return on employee motivation. Finally, we'll offer advice on getting started with incentive travel in your organization. By understanding these points and articulating them effectively, you'll be able to show your C-Suite just how valuable incentive travel can be in driving business success during these difficult times.
Inflation is a vicious cycle for businesses.
The Impact of Non-Cash Rewards
According to research by Christopher Hsee and Yuval Rottenstreich at the University of Chicago, people tend to overweight the psychological value of rewards when making decisions. In other words, we often place too much importance on the "experience" of receiving a bonus rather than its actual cash value. This has important implications for incentive travel programs. During inflation, when cash rewards lose their value quickly, the psychological value of an incentive travel experience can increase. This means that employees are more likely to be motivated by the opportunity to take an all-expenses-paid trip to a luxurious destination than by a cash bonus of the same value. See the article Academic Research in Action: Non-Cash Rewards in a Period of High Inflation, published May 2, 2022 by the Incentive Research Foundation.
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To conclude, incentive travel can be a powerful tool for motivating employees and driving business results, even during tough economic times. By understanding the economics of non-cash rewards and the psychology of how motivation matters in a recession, you can make a persuasive case to your C-Suite for using incentive travel in your organization. And by working with a company like Site Search & Select that has extensive experience and knowledge in the area of incentive travel, you can be confident that your program will be a success.
The Bottom Line
Watch this 5-minute video to understand the research and science behind the concept of Non-Cash Incentive Programs during inflationary times.
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