Washington, August 15: The findings of a brand new research counsel that tangible rewards encourage workers once they're straightforward to make use of, pleasurable, sudden, and distinct from wage. The research was just lately printed within the journal Accounting, Organizations, and Society.
A current survey of companies in the US revealed that 84 per cent spent greater than USD 90 billion yearly on tangible worker rewards, corresponding to present playing cards, recreation journeys and merchandise in hopes of accelerating productiveness.
"We found that there is, at best, mixed evidence regarding the motivational efficacy of tangible rewards versus cash rewards," stated Adam Presslee, an affiliate professor on the College of Waterloo's Faculty of Accounting and Finance. "It is somewhat puzzling why so many companies go to the trouble of tangible rewards when cash rewards also lead to motivational differences."
Presslee and his co-author, College of Wisconsin-Madison's Willie Choi, used 4 experiments to research the elements driving the choice between money and tangible rewards. The attributes examined embody ease of use of the reward (fungibility), hedonic nature of the reward (need vs. want), the novelty of the reward, and the way the reward is offered.
"Rewards are constellations of attributes, and firms should focus more on the motivational effects of the attributes associated with a reward rather than the reward type itself," Presslee stated. "Results confirmed that each of these attributes - individually and in combination - increases employee effort and performance."
The researchers advocate managers occupied with motivating workers utilizing tangible rewards could be finest served to supply tangible rewards that incorporate these 4 attributes.
"If for whatever reason tangible rewards are the only tool available, our results show compelling evidence that employees are motivated by rewards that are perceived as distinct from salary," Presslee stated. "Therefore, firms looking to get the most out of their reward programs should emphasize the distinctiveness of those rewards, and the attributes above are four ways firms can do that."
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