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Money will always be a motivator. It's important to have a nice balance between noncash and normal compensation. Employee points won't pay the bills.

Drew's right in general but Herzberg clarified that LACK of money creates dissatisfaction. When you can't pay the bills, money becomes all-important; when you have a tidy nest egg of savings, money is no longer a top priority. Cash is a hygiene factor rather than a motivational factor.

Laura hit solidly on the vital point that all motivations are personal and thus individual, variable and occasionally unique; so no one reward or reinforcement method is a universal panacea. The most effective supervisors are those who understand what motivates each of their subordinates. Only thus can you make optimum use of the various incentive tools at hand.

Thank you so much for your comments Drew and Jim. I agree with the the phrase 'cash is hygiene factor' and would only add that until salary reaches the 'hygienic' level for a particular employee, non-cash incentives may fail to motivate. As you both pointed out, finding the right balance is important.

All good points, Laura. I think that before you can begin to know what value each employee places on which benefit/perk, as an employer, you must know yourself all the added benefits your company supplies it's employees. Too often, this information goes unreported or is overlooked. Communication by using total reward statements is one way to take that first step.

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