As humans, our most basic forms of happiness do not only come from financial rewards, yet most companies

only offer financial-type of incentives to motivate their employees. Although it may be effective, it is not and should not be the only form of incentives. As of now, the most well-known and established form of incentives is cash, but we are starting to see a new trend. New types of incentives are being applied more frequently. These new forms of incentives can be traced back to 1990, where the Consortium for Alternative Reward Strategies found that just 16% of companies were using non-cash awards to motivate employees; two years later, that figure jumped to 79%, according to the Conference Board (Hutson). Incentives increase the value people assign to important work goals, as a result increasing work performance. By rewarding employees for going beyond their goals causes them to value work to a greater degree, increase self-confidence and improve employees attitudes toward the company, and boosts employee loyalty. The basic goal of our project is to show that these new types of incentives are just as, or more effective than the traditional forms. One of the reasons monetary incentives are issued is to compensate for the hard work and effort the employee inputs into the company. If money was not an issue, we would all be doing what we love; Vincent Van Gogh made virtually nothing from his paintings. James Joyce, the author, lived in poverty (Akst). This shows that there are factors other than money that motivate us, it should come as no surprise that, once their basic needs are met, people are motivated by a lot more than money. And the better the job, the less important money seems to be (Akst). The American psychologist, Abraham Maslow, believed that humans had five basic levels of needs. Starting from the bottom of the pyramid: psychological, safety, love and belonging, esteem, and self-actualization needs all must be met in order to be a healthy and happy individual. Financial reward from employment would fall into the second tier of the pyramid of needs, which is the safety of: body, employment, resources, morality, family, health, and property. While the

new types of incentives such as on-site gymnasiums, free meals, innovative break rooms, and the freedom to work on personal projects, help satisfy the needs that are higher-up on the pyramid. The first 2 lower levels of the pyramid satisfy basic needs, while the top 3 address the needs to learn and grow as individuals. With the top 3, satisfied workers become more contempt with themselves and feel more appreciated and respected as individuals. This leads to higher productivity in the work place. Companies like Google have been implementing these new forms of motivation. An example of a non-monetary incentive is a reward of a vacation: Suppose your employer wants to reward your work performance by giving you a trip valued at $2,000. What would be the greatest benefit of an employer-sponsored trip to you personally? 25% said feeling appreciated and recognized by their employers,15% said improved morale, 22% said getting away from work/a break/ rest and relaxation. and only 1% said the trip itself would be the greatest benefit (Hutson). This shows that people are most affected by the acknowledgement of their diligence rather than the reward itself. When a company like Google constantly provides the unique services they offer, such as the innovative break areas, on-site doctors, free meals, and the freedom to work on outside projects, it shows the employees that they are treated with appreciation and respect. One of the reasons Google is so successful is because it instills in its employees the credo that it isn't about the money- rather that theirs is a lifestyle that breeds innovative superiority over the competition. They portray themselves as a company that works towards changing the world through teamwork and creative involvement. Employees feel proud to be part of such a venture and they take immense pleasure in being a part of the brand (Kuntze). This type of loyalty provides employees with the motivation to work harder and accomplish more for the company. Googlers proudly say they work for the best company in the world and that they are a part of something important and believe the work they do is remarkably satisfying (Kuntze). Googles success as a company

clearly shows how their management tactics improve employees productivity and willingness to work towards the advancement of the organization as a whole. Non-cash rewards have a higher staying power compared to cash rewards. Meaning that they are constantly present and can be viewed or taken advantage of on a daily basis. They also provide a long-term pay-off for the company and its employees; these are the rewards that can help compensation and benefits professionals design incentive packages that appeal to the basic human needs of today's highly sought-after employees (Hutson). Because cash rewards are offered in many different organizations, a company which offers non-cash rewards as well would be more likely to have sincere workers who want to work for the company. Non-cash rewards are effective because it gives the employee a higher rate of satisfaction by letting the employee choose the reward for themselves. This is what respondents said they would do to earn a $2,000 trip of their choice: 79% said they would be very/somewhat likely to improve their attitudes. 71% said they would be very/somewhat likely to increase their workloads. 68% said they would be very/somewhat likely to work more hours. 67% said they would be very/somewhat likely to increase the speed and intensity of their work (Hutson). This is a clear sign that a reward like this greatly improves the productivity of the employees. Cash rewards also have a down side. Once the workers are accustomed to receiving cash rewards they will eventually think that they are entitled to it. This is where noncash rewards also have an advantage. These extrinsic rewards, since so commonly offered throughout organizations, are usually expected from an employees point of view. Many positions, especially in sales offer the extrinsic rewards, but rewards should be unique and relevant to the recipient, providing tangible evidence of achievement and fulfilling the needs for acceptance, recognition and personal esteem (Hutson). Intrinsic rewards on the other hand, offer a more memorable experience since they are

uncommon and the individual is more likely to acknowledge it as a reward for their performance, instead of something they are entitled to. The many on-site perks on Googles campus are offered daily. These intrinsic rewards are tangible reminders of the convenience and comfort they provide; employees are more likely to appreciate it on a day to day basis. Also because non-cash rewards have a higher staying power employees are more appreciative in the long run. Many people do not even remember how they used their cash rewards. In the very first AS national survey, conducted by Wirthlin Worldwide in March 1999, Americans were asked what they did with their last cash rewards. Twenty-nine percent said they used the money to pay bills, whereas 18% could not remember how it slipped away (Hutson). The purpose of a reward system is to motivate employees to work harder, but if the employees do not see the cash incentives as rewards then the system losses its effectiveness. In October/November 1999, AEIS asked American employees if they expected a holiday reward. Of the respondents who expected cash, 68%, an overwhelming majority already knew how they were going to spend it. Topping the list were saving/investing at 28% and paying bills at 21%. Only 5% said they would use the cash reward to splurge on themselves, the one thing employers wish employees would do to make those rewards memorable and motivating (Hutson). For this reason many employees who receive cash rewards may not even view them as rewards but rather just an entitlement for the work they have done.

Works cited in MLA

Kuntze, Ronald, and Erika Matulich. "Google: Searching for Value." Journal of Case Research in Business and Economics 2 (2010): 1-10. ABI/INFORM Complete. Web. 14 Nov. 2011.

Bishara, Norman, and Cindy Schipani. "Complementary Alternative Benefits to Promote Peace." Journal of Business Ethics89.01674544 (2009): 539-57. ABI/INFORM Complete. Web. 14 Nov. 2011.

Hutson, Darryl. "New Incentives are on the Rise." Compensation and benefits review 32.5 (2000): 40-6. ABI/INFORM Complete.Web. 15 Nov. 2011.

Daniel Akst NY Times,News Service. "Money can Motivate... but so can Love of the Job." Journal Record: 1. ABI/INFORM Complete.Apr 16 2001. Web. 15 Nov. 2011 <http://search.proquest.com/docview/259475313?accountid=10357>.