People do respond to incentives. We can nearly always get them to do what we want them to do as long as we find the right levers (combination of types and schedules of reinforcement) to motivate the desired behavior. People respond to incentives, even though not necessarily in the expected way. If people don’t do what we expect or want, you can certainly find some hidden incentives that explain why.

Pay practices are an important incentive in attracting and retaining employees. Because managers know financial incentives do motivate employees to higher levels of performance, many organizations have formal incentive programs, such as pay-for-performance, bonuses, profit sharing, and stock options. Along with pay, companies provide good benefits, or perks to motive employees.

Many organizations also have recognition programs, which tend to offer nonfinancial (not cash) rewards, such as banquets and employee of the year/month/week awards. Recognition programs can also include things like luncheons, plaques, gift certificates, mugs, t-shirts, and so on. Incentive and recognition programs are generally two separate programs.

Recognition is a motivator, as employees want full appreciation for work done. When was the last time your boss gave you a thank-you or some praise for a job well done? When was the last time your boss complained about your work? When was the last time you praised someone? What is the ratio of praise to criticism?

Giving praise develops a positive self-concept and leads to better performance through the Pygmalion effect. Praise is a motivator (not a hygiene) because it meets employees’ needs for esteem/self-actualization, growth, and achievement. Praise is a complement that encourages desired behavior, and it works better than criticism. It is probably the most powerful, least expensive, simplest, and yet most underused motivational technique.