Non-monetary incentives have gained popularity as a means of rewarding employees, but financial executives recently said that cash bonuses are still the preferred method for recognizing their teams' hard work. Forty-six percent of chief financial officers (CFOs) cited bonuses as the most effective way to acknowledge a job well done.
The survey was developed by Accountemps and was conducted by an independent research firm and includes responses from more than 1,400 CFOs from a stratified random sample of U.S. companies with more than 20 employees.
CFOs were asked, "Which of the following do you feel is most effective in rewarding your team after major projects?" Their responses:
Bonus46%Time off17%Departmental lunch
or social gathering16%Do not reward15%Other4%Don't know/no answer2%
“When budgets are tight, non-monetary perks such as time off or a departmental celebration can be valuable tools to acknowledge staff accomplishments on a major project," said Max Messmer, chairman of Accountemps and author of Motivating Employees For Dummies(R) (John Wiley & Sons, Inc.). "But employees also expect financial compensation for their efforts, which can be an effective retention tool."
Messmer added that recognizing personnel who go above and beyond the call of duty is essential to keeping them motivated. "The objective is to create a working environment that provides meaningful, tangible incentives and rewards. Such a workplace attracts quality people and creates a setting that maximizes productivity, enhances job satisfaction and protects the firm against the loss of good employees who may be difficult to replace," he said.