It is widely acknowledged that financial rewards can positively impact an individual's morale, and thus their motivation to work, as it is an integral component of daily life. Nonetheless, research indicates that while monetary incentives may enhance employee motivation, they do not necessarily improve overall business performance. For instance, the International Journal of Business Management's research has highlighted that financial incentives can indeed boost motivation, but they do not necessarily correlate to the quality of work performed.

This is excellent news for small businesses who seek to offer their employees incentives without incurring excessive expenses. While monetary rewards may be fleeting, there are several other effective ways to incentivize employees to improve their behavior. Let us consider some of these ways.

Employee Discounts: Providing employees with discounts can significantly increase their motivation and satisfaction, while saving them money in the process. Business News Daily's Sammi Caramela suggests that discounts on fashion accessories and office equipment are most effective. These programs must be straightforward and easy to use, such as a discount card with the employee's name and the company name.

Free Time: Time off from work is an excellent way to acknowledge and reward an employee's hard work. It not only allows for relaxation, but also leads to a more productive workforce, improved morale, and significant health benefits. JustLogin, for example, offers additional leave to employees who do not take leave throughout the year, as a way of incentivizing healthy living.

Mutual Respect and Recognition: Recognizing employees for their contributions is a fundamental means of improving work performance, as it demonstrates respect and appreciation for their efforts. Organizing office parties, appreciating employee efforts, and simply saying "congratulations" can be effective ways to achieve this.

Providing Services: Offering services such as daycare, cleaning or laundry services can significantly reduce employees' financial burden, while recognizing their efforts and contributions.

Giving Gifts: Non-cash gifts that are tailored to an employee's interests can be an effective way of recognizing their contributions. Identifying what an employee likes or dislikes, and offering a gift that aligns with their interests, can demonstrate sincere appreciation and recognition for their hard work.

In conclusion, while incentives in the form of financial rewards may provide temporary satisfaction, they do not necessarily guarantee improved employee behavior or business performance. Instead, businesses must look towards more creative and cost-effective ways of incentivizing their employees. Recognizing their efforts, offering discounts, providing services, and giving personalized gifts can all positively impact an employee's motivation, leading to a more productive and satisfied workforce.