Getting Beyond Money

Dewhurst, M., Guthridge, M., & Mohr, E. (2010). Getting beyond the money. Retrieved April 12, 2010 from: http://www.forbes.com/2010/04/07/motivating-employees-rewards-leadership-dewhurst_2.html

This article, published on the Forbes.com Web site, discusses the benefits some companies could realize by using nonfinancial ways to incentivize their employees. Many companies have gotten away from monetary incentives during the tough times seen in the last couple of years. The authors state that even though financial incentive are still an important part of a compensation package, numerous studies have shown that if an employee is paid a satisfactory wage, some non-financial motivators are more effective. In a recent survey, McKinsey Quarterly found that three noncash motivators are seen as equally or more effective than cash incentives. These are: praise from immediate supervisor, attention from company leadership, and the chance for the employee to lead projects or task forces. The authors claim that now is a good time for employers to implement these types of motivators instead of going back to the old ways of incentivizing their employees. This article discusses an important subject that managers should be informed about. It is important that companies find ways to motivate and retain their top employees, but it is also important to watch the bottom line in the process. With many companies still working their way out of the financial crisis, it is important to keep a close eye on how they are spending their money.