Toronto 16 Aug : Rewards that are tangible can motivate employees when they’re simple to use, enjoyable unexpected, and different from the salary they earn, a brand-new study has found. A recent study of companies in the US found that 84 per percent invested over $90 billion for tangible employee rewards like gifts cards, trips to the gym and other merchandise in the hope of improving productivity.
“We discovered that there is at most, mixed evidence about the effectiveness of motivational factors of tangible rewards over cash rewards” stated Adam Presslee, Associate Professor at the University of Waterloo’s School of Accounting and Finance.
“It is somewhat difficult to understand why so many companies choose to go to the problem of tangible rewards, when cash rewards can also cause motivational variations.”
In their study which was published in the journal Accounting, Organizations, and Society The team conducted four studies to study the factors that drive the preference between tangible rewards and cash.The factors studied include the ease of using of the reward (fungibility) as well as the histrionic character of the reward (want in vs.need) as well as the uniqueness of the reward and the manner in which the reward is distributed.
“Rewards are a collection of characteristics, and businesses should concentrate more on the effects of motivation of the characteristics associated with rewards, instead of the type of reward in itself,” Presslee said.”Results showed that each of these attributes – both individually as well as in combination – improves the effort and performance of employees.”
The researchers suggest managers who are interested in motivating employees through tangible rewards are best served by offering tangible rewards that incorporate these four qualities.
“If there is a reason that tangible rewards are your only option available, our findings provide convincing proof that rewards are valued by employees to be distinct from their salary,” Presslee said.”Therefore companies looking to maximize the value of their reward programs must emphasize the distinctness of the rewards they offer and the attributes listed below are four ways companies can achieve this.”
rvt/svn/
.
