Tangible rewards motivate employees when they’re easy to use, pleasurable, unexpected, and distinct from salary, a new study found.
A recent survey of firms in the US revealed that 84% spent more than $90 billion (about R1.5 trillion) annually on tangible employee rewards, such as gift cards, recreation trips and merchandise in hopes of increasing productivity.
“We found that there is, at best, mixed evidence regarding the motivational efficacy of tangible rewards versus cash rewards,” said Adam Presslee, Associate Professor at the University of Waterloo’s School of Accounting and Finance.
In the study, in the journal Accounting, Organizations and Society, the team found firms should “focus more on the motivational effects of the attributes associated with a reward, rather than the reward type itself”, Presslee said. | IANS…