Need a case about motivation

Employee motivation is generally divided into two categories.

1. Monetary incentives

Monetary incentives are the most common method used by most companies to motivate employees. The logic is simple and clear: stimulate employees to achieve the goals that managers hope to achieve through salary increases.

Money is indeed effective in attracting, motivating, and retaining employees and fostering high performance. Monetary incentives tend to be most effective when there is a direct and clear cause-and-effect relationship between an individual's behavior and the desired outcome, and when the desired outcome is easily measurable.

How do you understand this sentence? For example, Xiao Ming sells crayfish, and his boss tells him that he can make 100 yuan for selling 10 kilograms, and 300 yuan for selling 20 kilograms. His sales behavior is directly related to the desired results and can be easily measured. In this case, monetary incentives are effective.

2. Non-monetary incentives

Non-monetary incentives include social recognition, performance feedback and intrinsically attractive work tasks. The psychology community believes that non-monetary incentives are at least as effective as monetary incentives. Furthermore, where monetary incentives are often ineffective, nonmonetary incentives appear to be highly effective.

Two professors from the University of Cambridge compared the relative impact of monetary incentives and non-monetary incentives on employees of American fast food chains. The circumstances of this trial are ideal for studying the effects of monetary incentives because there is a causal relationship between employee behavior and outcomes, and the results are measurable.

In selected fast-food restaurants, the two professors also introduced two forms of non-monetary incentives: social recognition and performance feedback as alternatives to monetary incentives. Social proof refers to informal recognition, attention, praise, and sincere appreciation for a person or group for a job well done. Performance feedback is to change or maintain performance in a specific way and provide quantitative or qualitative information about past performance. This information is helpful for employees to do their jobs well.

The research results show that both monetary incentives and non-monetary incentives significantly improved the store's profits and customer service quality, while reducing employee turnover rates.

An interesting point is that this study proves that the effect of non-monetary incentives is very powerful. Specifically, the average profit margin of fast food restaurants increased from 30% to 36% after the implementation of non-monetary incentive intervention; monetary incentives accelerated the service response time of drive-thru meals by 19%, while non-monetary incentives improved the drive-through service response time by 19%. The service for picking up meals was accelerated by 25%; monetary incentives reduced employee turnover by 13%, and non-monetary incentives reduced employee turnover by 10%.