APRIL 06

“Money is a great motivator, but not a good satisfier.”

—David Klinger, vice president of organizational development, Mount Clemens General Hospital

MONEY HAS LITTLE VALUE AS AN AWARD

We all need more money. Just ask any employee what they want and they will almost always say “money.” The problem is, it doesn’t last. Not in their pockets—and not in their memories.

In a survey by American Express, when 1,010 people were asked what they did with their last cash bonus, almost 30 percent answered that they paid bills. Eighteen percent said they couldn’t remember. That’s almost half the recipients saying that their last cash bonus had little or no impact, which makes money a lousy award.

Is money important? Of course it is. It’s what gets people in the door every day. It’s just not what keeps them fully engaged in their work.

On the other hand, recognition done right has a huge emotional impact. You may not remember what you did with your last cash bonus, but we guarantee you remember your last award ceremony.

REMEMBER: 

Keep cash in your compensation strategy; but keep it out of your recognition program. It makes an awful award.