When and why tangible rewards can motivate greater effort than cash rewards: An analysis of four attribute differences

Choi, Jongwoon; Presslee, Adam

doi:10.1016/j.aos.2022.101389

Cited by 18 publications

(22 citation statements)

References 26 publications

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“…Many businesses and organizations use a variety of incentives or rewards to motivate staff to improve their performance (Sittenthaler and Mohnen, 2020 ). Reward can also be defined as a variety of one-of-a-kind advantages delivered to employees as a substitute for effort or non-trivial monetary value (Choi and Presslee, 2020 ). Primary rewards include financial remuneration, benefits, and other non-cash compensation, as well as job experience (Kulikowski and Sedlak, 2020 ).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Employee Retention in the Service Industry in Malaysia

et al. 2022

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This study aims to investigate the effects of work-life balance, work environment, and reward and compensation on employee retention in Malaysia. A total of 400 questionnaires were collected online from employees within the service industry in Malaysia. Partial least square structure equation modeling was used to test the model and hypotheses. The results reveal that work-life balance and work environment had a strong positive effect on employee retention, but reward and compensation had a much stronger positive effect on employee retention. This research provides unique theoretical contributions by investigating these factors in the midst of the COVID-19 outbreak as components of the reciprocal process between employee and employer, and their effects on employee retention. This study also provides vital insights to business organizations to consider designing effective employee retention plans for a successful business.

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Section: Hypothesis Developmentmentioning

confidence: 99%

Employee Retention in the Service Industry in Malaysia

et al. 2022

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“…Our research thus highlights the importance of studying employees' approach (i.e., calculative or affective) when facing various types of rewards (Dhar and Wertenbroch 2000). This finding is important given that organizations are increasingly using affect‐rich, noncash rewards, in lieu of cash rewards, to motivate employees (Choi and Presslee 2022; Kelly et al 2017; Mitchell et al 2022; Presslee et al 2013).…”

Section: Discussionmentioning

confidence: 99%

“…Thus, our research highlights the importance of studying employees' calculative and affective approaches in understanding how affect‐rich goal‐based rewards motivate employees. This insight is important because more and more organizations are using affect‐rich, noncash rewards, such as gift cards and merchandise, to motivate employees (Choi and Presslee 2022; Kelly et al 2017; Lane 2021; Mitchell et al 2022; Presslee et al 2013).…”

Section: Introductionmentioning

confidence: 99%

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Motivating Employees with Goal‐Based Prosocial Rewards*

Berger

Guo

Presslee

2022

Contemporary Accting Res

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A recent trend in organizations is to motivate employees with goal‐based prosocial rewards, whereby employees must donate their rewards to charities upon goal attainment. We examine the motivational effects of goal‐based prosocial rewards versus cash rewards under different levels of goal difficulty. We develop our hypotheses based on affective valuation theory, which posits that when valuing uncertain outcomes by affect rather than calculation, individuals are largely insensitive to changes in probability of the outcomes, including probability of goal attainment. Experiment results support our hypotheses. Specifically, we find that employees who are rewarded with prosocial (vs. cash) goal‐based rewards are more likely to adopt an affective valuation approach. Consequently, when employees are assigned either an easy goal or a stretch goal, their effort is higher when incentivized with a goal‐based prosocial reward than a cash reward. Furthermore, there is a less curve‐linear relationship between goal difficulty and effort with prosocial (vs. cash) goal‐based rewards. These findings highlight for incentive system designers the motivational advantage of goal‐based prosocial rewards relative to traditional cash rewards. Furthermore, we extend the academic literature by showing how affect‐rich rewards such as prosocial rewards can influence employees' assessment of the probability of goal attainment.

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“…They are seen as tangible incentives that encourage employees to put in their best effort towards achieving organisational goals (Ali, & Anwar, 2021). Choi and Presslee, (2023) argued that monetary rewards are seen as tangible incentives that motivate employees to put in their best effort towards achieving organisational goals. Studies have shown that monetary rewards are effective in motivating employees, especially when they are linked to performance.…”

Section: Introductionmentioning

confidence: 99%

Assessment of Rewards That Motivate Employees in Organisations: The Case of Cape Coast Technical University

Lanidune

Boampong

2023

AJAR

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Purpose: The purpose of this study is to investigate the rewards that motivate employees in organisations in universities, and to identify the most effective types of rewards that can improve employee motivation and organisational success. Methodology: This study utilizes a mixed-method approach, incorporating both qualitative and quantitative data collection methods. The target population for the study consisted of senior members, senior staff and junior staff of the University with a sample size of 196. A stratified random sampling method was used in selecting staff from the three categories. The qualitative data will be collected through in-depth interviews with employees from various positions in universities, while the quantitative data will be collected through a survey. The data was analysed descriptively using mean scores to identify the factors that influence the effectiveness of rewards in motivating employees. Research Limitation: This study is limited by its sample size, which may not fully capture the diverse range of employees in universities. Additionally, the study's findings may be limited by the specific context in which the study is conducted. Findings: An association between reward and productivity in the workplace was found in the study. Yet, the data also revealed that Cape Coast Technical University does not have a well-defined strategy for reward systems. As a result, workers felt that the institution did not treat them fairly. Practical Implications: The study's findings are expected to have significant practical implications for universities, as they can use the insights gained from this study to develop more effective reward systems that can motivate their employees. Social Implications: The social implications of this research are essential, as motivated employees are more likely to engage with students and provide better educational experiences, which can benefit society as a whole. By improving employee motivation and job satisfaction, universities can provide a better learning environment for their students and contribute to social welfare. Originality/Value/ Novelty: The novelty of this study lies in its focus on rewards that motivate employees in organisations in the higher education sector. While previous studies have explored employee motivation in various sectors, this study's specific focus on universities adds to the existing body of knowledge.

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When and why tangible rewards can motivate greater effort than cash rewards: An analysis of four attribute differences

Cited by 18 publications

References 26 publications

Employee Retention in the Service Industry in Malaysia

Employee Retention in the Service Industry in Malaysia

Motivating Employees with Goal‐Based Prosocial Rewards*

Assessment of Rewards That Motivate Employees in Organisations: The Case of Cape Coast Technical University

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