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Cash is king for most compensation plans. However, many organizations use non-cash awards, incentives and recognition programs to supplement cash compensation and improve their total rewards programs.
Results from a recent
Culpepper Pay Practices and Benefits Survey highlight a variety of different non-cash awards (excluding stock) used by technology and life science companies to recognize and reward employees for service, achievements and performance.
Types of Non-Cash Awards and Recognition ProgramsThe table below highlights different types of non-cash awards and recognition programs. Gift cards and certificates are the most popular, with 38 percent of companies providing their employees with this type of award. In general, large companies are more likely to use non-cash awards and recognition programs than small companies.
Table 1: Non-Cash Awards and Recognition Programs
Non-cash award and recognition
Percent of companies by size(# of employees)
Up to 100
101 to 1,000
Top performer listing
Honorary sales club
Special parking spot
Events and Achievements Recognized and Rewarded
Companies typically recognize and reward employees with non-cash awards for long-term service, on-the-spot awards and significant achievements, as highlighted below.
Table 2: Events and Achievements for Non-Cash Awards and Recognition
Reason for non-cash award and recognition
Budget for Non-Cash Awards and Recognition ProgramsMost organizations allocate less than 1 percent of their total compensation budget for non-cash awards and recognition programs.
Tax Gross-Ups for Non-Cash AwardsTax gross-ups enable employees to enjoy the benefits of a non-cash award without having to pay taxes on the value of the award. Thirty-seven percent of organizations provide employees an additional cash payment to cover the tax liability of their non-cash awards.
Table 3: Tax Gross-ups for Non-Cash Awards
Percent of companies
Up to 100 employees
101 to 1,000 employees
Over 1,000 employees
Culpepper and Associates, founded in 1979, conducts worldwide salary surveys and provides benchmark data for compensation and employee benefit programs.
Reposted with permissionArticle Source:
Culpepper eBulletin, March 2008Complimentary subscriptions at:
Culpepper Pay Practices and Benefits Survey of 121 organizations.Survey Dates: January--March 2008
Breakdown by size:• Up to 100 employees: 28 percent.• Over 100 to 1,000 employees: 43 percent.• Over 1,000 employees: 29 percent.
Breakdown by sector:• Technology: 62 percent.• Life science: 21 percent.• Health care services: 2 percent.• Other: 14 percent.
Breakdown by country:• United States: 89 percent.• Canada: 7 percent.• Other: 4 percent.
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