Financial incentives 'not necessarily more coveted' for motivation

Date: 09/11/2009

A new survey has argued that businesses are cutting back their financial incentive programmes, yet few of them are using other ways of inspiring talent when they should be.

McKinsey Quarterly emphasised that, if anything, organisations may benefit from consulting corporate events management on the issue of using less money-based incentives and recognition.

According to the organisation, respondents see three non-cash motivators - namely praise from immediate managers, leadership attention and a chance to lead projects or task forces - as no less or more effective motivators than the equivalent financial incentives: increased base pay, stock or stock options or cash bonuses.

McKinsey Quarterly added that the survey's top three non-financial incentives and recognition play major roles in helping workers feel valued and emphasise the company's push to create opportunities for career growth.

It added that this is particularly important as these themes "recur constantly in most studies on ways to motivate and engage employees".

The Quarterly has been operating since 1992 and has the goal of helping business leaders run their organisations with an emphasis on productivity, competition and creativity.

Posted by Michael Ewing

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