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Tuesday, May 18, 2010

Don’t PAY more, PRAISE more

Motivation

Finally, corporate America seems to be getting it: that there are more highly-prized psychological rewards at work, beyond money.

Asked which of the following are MOST EFFECTIVE in motivating their people, survey respondents to McKinsey’s poll correctly answered that these non-financial rewards are extremely or very effective:

67% Praise and commendation from immediate manager
63% Attention from leaders
62% Opportunities to lead projects and task forces

60% Performance-based cash bonuses
62% Increase in base pay
35% Stock or stock options

However, the wheels fly off the logic train when asked how frequently these “top motivators” are actually used. Here were the motivators that respondents use “always or most of the time:”

68% Performance and cash bonuses
71% Increase in base pay
63% Praise and commendation from immediate manager

54% Opportunities to lead projects and task forces
41% Attention from leaders
24% Stock or stock options

I believe this is called the “knowing-doing gap,” when you know what you should be doing, but fail to actually do it.

How about your org? How well are you implementing non-financial rewards as a way to turn on your talent?

See McKinsey’s full chart here.

 

 

 

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Author
Rebecca Ryan
Rebecca Ryan

Date
05/18/2010

Categories
Next Companies, Next Managers

Tags
employees, motivate, non-financial rewards, praise, opportunities

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