the steak knives or the caddy? small rewards and cultures of appreciation

According to Fortune, bonuses, titles, and big giveaways to top performers aren't very effective in motivating employees. Of course, Fortune's primary source on this point was a CEO selling alternative incentive systems -- Eric Mosley of Globoforce, the "leading worldwide provider of global strategic recognition solutions." The article did not cite much of the empirical literature on the subject from social psychology or organization studies, though it did offer a supportive quote from Hyagreeva Rao, a Stanford business professor and frequent contributor to American Journal of Sociology.

Celebrity CEO "Neutron Jack" Welch famously advocated rewarding the top 10% of employees and firing the bottom 10%. Universities, in contrast, offer non-tenured faculty an incentive system more akin to that of the Alec Baldwin character in Mamet's Glengarry, Glen Ross:



So what might work a little better?

Share the Wealth. About 80% to 90% of employees should get some reward every year. "A lot of companies worry that this sounds like 'everyone is a winner' thinking," says Globoforce's Mosley. "But when you're trying to reinforce certain behaviors, you need to constantly recognize them."

Small bucks beat big ones. The average prize should be just $110. Smaller prizes can seem insignificant, but larger ones, Globoforce found, don't motivate any better. "Even billionaires appreciate a Christmas sweater from their mom," says Mosley.

Weekly, not quarterly. Every week, 5% of employees should get an award. Any less frequent and people will forget about the program. "Salary increases, which many employees say they prefer, are one-time events," Mosley says. "There's just pressure for another one. Small awards all the time are a way to constantly touch people."

I'd like to see broader cultures of appreciation in academic departments, but academics are loathe to give out $110 gift certificates until they've been properly vetted by a Behaviors to be Recognized Committee with a fully articulated appeals process. Maybe if we hired Globoforce...