When converting a cash program to a point-based merchandise or travel incentive program there is often a sense of "income loss" associated with the elimination of the cash award payout. There are ways however, to compensate for the perceived lack of compensation. Here are strategies that have proven effective for other companies that chose to eliminate "cash" from their incentive programs.

• Create the impression in the minds of all employees that the cash program has been replaced by a better, perhaps even bigger program. This will help turn a perceived negative into a positive. Here are ways to create the image of a "bigger and better" program:

• Conduct a "kickoff event to introduce and launch the new program (launch an even bigger event if you’ve traditionally had kickoffs). Have senior management convey a commitment to reward employees for their contributions and efforts and reaffirm that the new program represents a greater emphasis on incentives.
  
  
• Develop and introduce a communications campaign to reinforce the message of the kickoff and focus on the benefits and "greater" award opportunities the new program presents. Program promotion elements should include
• Program announcement kit including a program announcement brochure, a letter from corp. management and a merchandise award catalog or brochure.
• Program posters and banners
• Theme/company logo’d premiums
• Paycheck stuffer/reminders
  
  
• If the total payout with the new point program is greater than you were paying out in cash, make a big deal out of the increase in funding/commitment.

• Build excitement into the new program and create the perception that there is a greater opportunity to earn something than the old "cash" program. Here are some examples:

• Offer "starter points" for enrolling or committing to the program at the kickoff. Typically, starter points would range from 500 –1,000 points ($2.50-$5.00 at $.005/point)
• Structure the program to include a "Fast Start Bonus" for achieving a short term "immediate" goal or benchmark.
• Issue points more frequently than the cash was awarded. You can issue points in smaller amounts than cash and the frequency of earnings can reinforce the sense of "more" , while still sticking to your budget.
  
  
  
• Give employees examples of the awards they can win and the value of points. Provide a range of examples from as low as $25 awards (in points) to $500. This will give the points "value".
  
  
• Include the family in the program. Send program materials home.

• It is very important that all employees either receive a catalog or award brochure or at least have easy access to an award vehicle. The best option is to send the catalog to the home. The more that employees are exposed the merchandise awards and are calculating what they can win and setting personal goals, the less of an issue "cash" will be.

• Get employees focused on the awards:

• Have them set personal goals by sending them a catalog teaser mailing that asks them to list the top five awards they would most like to win for their family. Offer Bonus Points for submitting their award goals.

• Send all employees a "catalog quiz", a mini catalog scavenger hunt through the catalog. The quiz includes questions about awards featured throughout the catalog and gets employees looking at the entire catalog. Offer bonus points for turning in their quizzes.