A recent McKinsey Quarterly survey2 underscores the opportunity. The respondents view
three noncash motivators—praise from immediate managers, leadership attention (for
example, one-on-one conversations), and a chance to lead projects or task forces—as no
less or even more effective motivators than the three highest-rated financial incentives:
cash bonuses, increased base pay, and stock or stock options (exhibit). The survey’s top
three nonfinancial motivators play critical roles in making employees feel that their
companies value them, take their well-being seriously, and strive to create opportunities
for career growth. These themes recur constantly in most studies on ways to motivate and
engage employees.