Because of the economy, companies around the world are having to cut back on their financial-incentive programs, but few have used other ways of inspiring talent as they should. Numerous studies have concluded that for people with satisfactory salaries, other motivators are more effective than extra cash in building long-term employee engagement in most sectors, job functions, and business contexts.
Many financial rewards mainly generate short-term boosts of energy. Indeed, the economic crisis, with its imperative to reduce costs and to balance short- and long-term performance effectively, gives business leaders a great opportunity to reassess their incentives and decide what will serve their company best through and beyond the downturn.