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In these recessionary times, companies around the world are cutting back on bonuses and cash rewards because they can’t afford them, with the exception it seems of certain banks.
A McKinsey quarterly survey highlights the value of non-cash motivators, such as praise from immediate managers, leadership attention, and a chance to lead projects. These are no less, and often more, motivational than cash bonuses, increased base pay or stock options.
Indeed, praise or commendation from the immediate manager scored the highest of all motivators in the survey of over 1,000 executives, managers and employees from all over the world.
70 percent of organisations have adjusted their reward programmes during the last year (or plan to do so), but at the same time 13 percent report that managers praise their subordinates less often, 20 percent that opportunities to lead projects are scarcer, and 26 percent that leadership attention to motivate talent is less forthcoming.
This seems hugely short-sighted. While most people on a reasonable salary will accept the financial realities of current times, for leaders and managers not to offer more praise, pay more attention to colleagues and offer interesting project opportunities seems a sure path to poor performance and a lack of energy as economies turn for the better.