When times are hard, it’s equally hard to keep and motivate employees by routinely upping their pay, and in any case many studies suggest that for people with good salaries, some nonfinancial incentives work better. The respondents to a McKinsey Quarterly survey regarded three of them—praise from managers, leadership attention, and a chance to lead projects or task forces—as no less or even more effective than the three leading financial motivators: cash bonuses, higher base pay, and stock or stock options. That’s why the ongoing economic crisis makes it essential for business leaders to understand the lessons of “Motivating people: Getting beyond money”
