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Hey Doug,
I agree that cash is not the best incentive! Working at Rypple: http://rypple.com I have learned that feedback and public recognition is appreciated more than money. If people are recognized for what they do and achieve, and they feel like their work is paying off, then they happiness level will increase. If you don't show any recognition for what an employee does, they won't feel needed or recognized and that created a negative workplace.
Try something like kudos to show your public recognition of an employee or fellow co worker. http://bit.ly/clCJxL

Thanks for the great post! Something all employers need to be reminded of sometimes.

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