Combine Appreciation with Cash Incentives

Google appears to have discovered a way to pay people for being helpful without making it transactional. The company invites employees to nominate colleagues who have been helpful to receive small cash rewards. By making the rewards a product of peer nomination, Google converts a cash payment into a symbol of appreciation. As a result, people are less likely to see the reward as cheapening … [ Read more ]

Encouraging Promotion and Prevention Behavior

E. Tory Higgins, the Stanley Schachter Professor of Psychology at Columbia University, argues that one of two states tends to dominate the way we think: a promotion focus or a prevention focus. The basic distinction is really to do with when you’re pursuing goals or making decisions. The promotion state is when you think of your goal as something to accomplish, something to aspire to; … [ Read more ]

Pick and Mix Benefit Options

Studies have shown that staff at different stages in their career favor different benefits, for example younger staff may tend to favor cash rewards rather than pensions. Companies can overcome these discrepancies by developing flexible “pick and mix” benefit options. An example of this is a points based system where staff at different levels qualify for varying levels of points; these points can … [ Read more ]

I Caught You Caring

In one organization, managers give an “I caught you caring” pin to employees who demonstrate outstanding service or performance. Only a few stellar employees receive this coveted award. Below the words “I caught you caring” is the invitation “Ask me what I did!” This encourages the award-winning employees to share stories about their outstanding performance with their coworkers.

The pins have an ongoing impact on … [ Read more ]

An Award for Complaining

Headsets.com president and CEO Mike Faith offers employees several opportunities to earn bonuses. The most unique one is a $50 award for complaining. “On their time sheets every week, people have an opportunity to make comments, from praise for another employee to complaints. I pick a bunch each week to pay $50 to. I’m most often eager to pay for complaints. Whether I think it’s … [ Read more ]

Let the Employees do the Rewarding

In a hierarchy, the lion’s share of recognition and recompense goes to those who hold the biggest titles. The real heroes are left unsung.

Linden Lab’s Remedy: The community—not some select group of corporate overlords—does the rewarding. …It does this through a software tool, called the Rewarder.

Each quarter, every associate is given an equal share of a portion of Linden’s net proft—recently, about one thousand … [ Read more ]

The Love Machine

Philip Rosedale, Linden Lab’s charismatic founder and chairman, took one long night to build a simple but potent tool for community building. He calls it the “Love Machine.” It’s a Web page that lets any of Linden’s roughly three hundred associates zap a quick-hit message of appreciation to a colleague.

Say a coder beats a do-or-die deadline for patching a troublesome bug that’s infected Second Life’s … [ Read more ]