{"id":5105,"date":"2026-05-26T15:05:51","date_gmt":"2026-05-26T05:05:51","guid":{"rendered":"https:\/\/www.biworldwide.com\/en-au\/?p=5105"},"modified":"2026-05-26T15:05:52","modified_gmt":"2026-05-26T05:05:52","slug":"inspiration-vs-compensation","status":"publish","type":"post","link":"https:\/\/www.biworldwide.com\/en-au\/our-work\/blog\/inspiration-vs-compensation\/","title":{"rendered":"Inspiration vs. compensation"},"content":{"rendered":"
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Home<\/a><\/span><\/span><\/div>\t\t\t<\/div>\n\t\t\n\t\t\t\t\t
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\n\t\t\t\tInspiration vs. compensation\t\t\t<\/h1>\n\t\t\t\t\t\t\t

\n\t\t\t\t\tWhy cash alone can’t buy commitment.\t\t\t\t<\/h2>\n\t\t\t\t\t\t\t\t\t\t
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There\u2019s a Seinfeld episode where Kramer outshines Jerry by giving Elaine the birthday gift she really wanted: a wooden bench. Jerry gave her cash. The bench won by a landslide<\/strong>.<\/p>\n\n\n\n

It\u2019s funny, but it also raises a real question: are people more inspired by something meaningful than by money itself?<\/p>\n\n\n\n

Research suggests yes<\/strong>.<\/p>\n\n\n\n

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The science behind the wooden bench<\/strong><\/p>\n\n\n\n

Dr. Victoria Shaffer and Dr. Hal Arkes conducted a landmark study on employee motivation and rewards that explains this phenomenon perfectly.<\/p>\n\n\n\n

While employees often say they want cash, their behaviour tells a different story. Shaffer and Arkes identified what they called\u00a0\u201c<\/strong>preference reversal,\u201d<\/strong>\u00a0a psychological pattern where people claim to prefer one thing (cash) but are actually motivated by another (non-cash).<\/p>\n\n\n\n

In other words, we\u2019ll gladly take the cash, but we\u2019ll<\/strong> work harder for<\/strong> the bench<\/strong>.<\/p>\n\n\n\n

What the data says<\/strong><\/p>\n\n\n\n

Our latest global research shows the same pattern. Employees report being more inspired to work harder for non-cash rewards, like concert tickets or the newest tech items, than for cash alone.<\/p>\n\n\n\n

\"Bar<\/figure>\n\n\n\n

And the effect holds true for sales people, too.<\/p>\n\n\n\n

\"Bar<\/figure>\n\n\n\n

It\u2019s not that cash doesn\u2019t motivate; it\u2019s that non-cash rewards create an emotional connection. They carry meaning, story, and memory: three things money rarely provides.<\/p>\n\n\n\n

Evidence from the field<\/strong><\/p>\n\n\n\n

Our experience and our data consistently validate this finding.<\/p>\n\n\n

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\n\t\t\t\t\t\t\tBarry Danielson, Vice President of Decision Sciences at BI WORLDWIDE, has conducted multiple studies demonstrating the power of non-cash rewards.\t\t\t\t\t<\/h3>\n\t\t
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\u201cNumerous studies have shown that cash is not as effective in driving higher levels of performance as aspirational non-financial rewards such as merchandise, travel, and experiences.\u201d<\/em><\/p>\n\n<\/div>\n\t<\/div>\n\t<\/div>\n\n\n

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Across industries, non-cash rewards outperform cash in both engagement and long-term memory. People recall the trip, the experience, or the tangible item long after the check has been spent. That recall reinforces loyalty and performance.<\/p>\n\n\n\n

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Expanding the marketplace of motivation<\/strong><\/p>\n\n\n\n

Of course, not everyone wants a wooden bench. The secret lies in choice.<\/p>\n\n\n\n

To inspire the widest range of employees, BI WORLDWIDE offers three diverse marketplaces filled with non-cash reward options. Our Merchandise Marketplace offers premium brands and top-tier items they\u2019ll love. Our Experiences Marketplace helps send them on a trip of a lifetime with locations and experiences beyond their wildest dreams. And our Mastery Marketplace is filled with learning and development courses that get them excited about what they can accomplish.<\/p>\n\n\n\n

When participants can choose something personal, it transforms a transaction into an experience.<\/p>\n\n\n\n

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The bottom line<\/strong><\/p>\n\n\n\n

Cash pays the bills. Experiences tell the story.<\/strong><\/p>\n\n\n\n

When companies balance monetary rewards with personalised, aspirational recognition, they don\u2019t just compensate employees, they inspire them.<\/p>\n\n\n\n

Give employees the opportunity to earn what they see as their wooden bench and watch performance soar.<\/p>\n\n\n

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\n\t\t\t\t\t\t\tKey takeaways:\t\t\t\t\t<\/h3>\n\t\t
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  • People claim to prefer cash but are more inspired by non-cash rewards.<\/strong><\/li>\n\n\n\n
  • Non-cash rewards create emotional impact and long-term motivation.<\/li>\n\n\n\n
  • Research confirms that “preference reversal” drives stronger engagement.<\/li>\n\n\n\n
  • Choice amplifies meaning: the best<\/strong> rewards feel personal<\/strong>, not prescribed.<\/li>\n\n\n\n
  • Non-cash incentives like experiences<\/strong> and merchandise<\/strong> outperform cash across all roles.<\/li>\n<\/ul>\n\n<\/div>\n\t<\/div>\n\t<\/div>\n\n\n
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    Hear from our expert<\/h2>\n\n\n\n

    Walter Ruckes, Vice President, Client Services<\/p>\n\n\n\n

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