Many Employers Seek to Replace Cash Bonuses With Other Work Incentives.
The Wall Street Journal
April 3, 2000
Many employers seek to replace cash bonuses with other work incentives.
Merchandise and travel awards are more memorable with employees, officials say. Diebold Inc, Canon OH, which makes automated teller machines, recently scrapped cash for sales people as lacking trophy value, says Jerry Bryan, marketing services manager. "Recipients tend to spend their cash incentives on routine expenses such as house payments or braces for their children", says the Society of Incentive and Travel Executives.
When American Express Incentive Services polled 1,101 workers, 29% said they used their cash rewards to pay bills and 18% couldn't remember what they did with the money.
MasterCard International, has replaced cash bonuses for its employees with hotel, show-ticket, and other gifts.
A customer-service rep for American Century Cos., a Kansas City, MO, mutual fund firm, refused to work on Y2k problems over New Year's after learning that $250-a-day bonuses were pretax, not after tax.