Workplace Recognition and Incentive Programs

Ideal Motivational Perk?

Posted on February 22, 2010 by Carl Bonura in Uncategorized

Many companies see cash as the ideal motivational perk. This is usually not the case. A recent survey from McKinsey found that three non-cash motivators rise above all other forms of incentive:

  1. Praise from managers
  2. Attention of leadership that takes place in one-on-one conversations
  3. The chance to lead projects, teams or task forces.

Such nods and recognition topped even cash bonuses, increased base pay, and stock or stock options – the three top-ranked financial incentives, McKinsey found.

“The survey’s top three nonfinancial motivators play critical roles in making employees feel that their companies value them, take their well-being seriously, and strive to create opportunities for career growth,” the McKinsey report noted. “These themes recur constantly in most studies on ways to motivate and engage employees.”

Rewards must be in alignment with the expectations of the organization and its people. Rewards can enhance valued employees’ commitment to the organization, boost morale, motivate future efforts, reinforce positive outcomes, encourage repeat performances and help keep employees’ “eye on the ball” vis a vis organizational goals. It also strengthens the connection between strategy and results.