Monetary incentives don’t buy workplace happiness. Motivation using monetary ‘carrots’ – such as perks or financial compensation – has a weak exchange rate with today’s knowledge worker. As the Harvard Business Review explains : “Though necessary, these extrinsic motivators [perks, promotion, pay] don't necessarily excite people to work smarter or harder. Instead, they prompt employees to do only the minimum required to get that next raise or job title.” Put another way: ‘carrots’ do not work as a motivator. Instead, as the studies illustrate, it is intrinsic motivation – such as recognition from managers and peers – that gets results.

2. Monetary incentives don’t buy workplace
happiness.
Motivation using monetary ‘carrots’ – such as
perks or financial compensation – has a weak
exchange rate with today’s knowledge worker.

3. As the Harvard Business Review explains,
“Though necessary, these extrinsic motivators
[perks, promotion, pay] don't necessarily excite
people to work smarter or harder.

4. As the Harvard Business Review explains,
“Though necessary, these extrinsic motivators
[perks, promotion, pay] don't necessarily excite
people to work smarter or harder.
Instead, they prompt employees to do only the
minimum required to get that next raise or job
title.”

5. Put another way: ‘carrots’ do not work as a motivator. Instead, as the studies
illustrate, it is intrinsic motivation – such as recognition from managers and
peers – that gets results.

6. Put another way: ‘carrots’ do not work as a motivator. Instead, as the studies
illustrate, it is intrinsic motivation – such as recognition from managers and
peers – that gets results.
Here’s a few reasons why…

7. Reason #1
Points and prizes create
a false economy

8. When an exchange occurs for going above and beyond, if that
same exchange doesn’t happen the next time, employees are let
down and reluctant to keep over-performing.

9. When an exchange occurs for going above and beyond, if that
same exchange doesn’t happen the next time, employees are let
down and reluctant to keep over-performing.
In this way, monetary incentives (beyond salary and benefits,
which are table stakes) can be a deterrent.

10. Reason #2
Recognition = Real returns

11. Organizations pay a high price when they
involuntarily lose employees.
Recognition translates to retention and
increased effort. A Gallup study of over
10,000 business units and more than 30
industries found that employees are more
likely to give more when they feel valued.

12. Employee engagement benefits the bottom line in measurable ways,
with the right non-monetary social recognition program providing:
· Improved employee and customer retention
· Increased productivity
· Decreased operational costs

13. Reason #3
Recognition unleashes social and
intellectual capital

14. At one time machinery or land determined an organization’s success.
Today, people represent the intellectual capital of the business.

15. At one time machinery or land determined an organization’s success.
Today, people represent the intellectual capital of the business.
The right social recognition program leverages an organization’s people
and their stories to shape the corporate culture.

16. Sharing success stories across the corporate intranet transforms
recognition into a valuable asset for employee development and
collaboration, easily accessible to all.

17. Sharing success stories across the corporate intranet transforms
recognition into a valuable asset for employee development and
collaboration, easily accessible to all.
Incentive programs simply can’t compete.

18. So praise or prizes?
Done right, recognition – not rewards – is the
heart of enterprise, pumping life into employee
engagement, productivity and retention.

19. Some of TemboSocial’s clients:
By leveraging the corporate intranet, TemboSocial’s suite of software
add-ons help empower, inform, and create a culture of employee-driven
excellence. TemboSocial helps drive engagement with Social Recognition,
Ideation, Polling, Commenting, and Employee Engagement Surveys.