In his blog post today, incentive consultant Paul Hebert writes that you can’t replace non-monetary incentives with pay-for-performance. He argues that non-monetary rewards provide a different sort of incentive than more money does and are necessary for keeping employees motivated.
I’m not so sure. I definitely love the idea of getting a gift card to a local restaurant or bookstore as an extra treat for a job well done, but I think if you gave me the choice, I’d rather have cash. Sure, it’s fun to think of going out to eat or buying a book I might otherwise have left on the shelf, but extra money can go toward that or to helping me achieve my personal financial goals, such as paying off my car or saving for a down payment on a condo.
Must employers provide both monetary and non-monetary incentives to keep employees motivated?
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