Monday, March 5, 2012

noncash motivators are more effective than financial incentives

"Three noncash motivators—praise from immediate managers, leadership attention and a chance to lead projects or task forces—are . . . even more effective motivators than the three highest-rated financial incentives: cash bonuses, increased base pay, and stock or stock options" according to the McKinsey Quarterly.

As managers we must use these motivators -- we are responsible for creating the context and exploiting opportunities that provide opportunities to employees to lead visible and valuable projects, and for noticing when employees do great work (and therefore praising and giving attention to those employees).

Managers and leaders establish the conditions that enable a person to access his internal motivation by demonstrating non-characterizing, direct, and specific appreciation and by coaching employees whenever possible.



1Dewhurst, M., Guthridge, M., & Mohr, E. (2009, November). Motivating people: Getting beyond money. Retrieved February 25, 2012, from McKinsey Quarterly : http://www.mckinseyquarterly.com/Motivating_people_Getting_beyond_money_2460

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