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	<title>Comments on: Motivating Employees With Cash or Gifts?</title>
	<atom:link href="http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/feed/" rel="self" type="application/rss+xml" />
	<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/</link>
	<description>My Irrational Life</description>
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		<title>By: Nick Matyas</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2150</link>
		<dc:creator>Nick Matyas</dc:creator>
		<pubDate>Thu, 14 Jan 2010 09:26:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2150</guid>
		<description>Awesome posting man!
You are a great blogger. I like your work. Truly you are a genius.
Keep up the good work Man!!

&lt;a href=&quot;http://www.webroyalty.com&quot; rel=&quot;nofollow&quot;&gt;Webroyalty&lt;/a&gt;</description>
		<content:encoded><![CDATA[<p>Awesome posting man!<br />
You are a great blogger. I like your work. Truly you are a genius.<br />
Keep up the good work Man!!</p>
<p><a href="http://www.webroyalty.com" rel="nofollow">Webroyalty</a></p>
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		<title>By: Aunty Bev</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2149</link>
		<dc:creator>Aunty Bev</dc:creator>
		<pubDate>Wed, 10 Dec 2008 12:56:23 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2149</guid>
		<description>Interestingly enough this sort of question came up with my husband’s company.

 Upon production of receipts, the company would reimburse its employees for water and energy bills up to $2,000 in each financial year. A few earnest souls decided that this reimbursement might encourage employees to waste water and energy – highly unlikely for the vast majority of people, but never mind. These same earnest souls proposed that, instead of this reimbursement, the company offer holiday vouchers to the value of $2,000. Fortunately the idea was canned and the benefit has now been tweaked so that employees receive a cash benefit for the amount not claimed by the end of the financial year.

The problem with offering holidays rather than cash is that some employees desperately need the cash for basics. The number of working poor seems to be increasing and it’s hard to predict who the working poor might be simply by their salaries because some people have very costly hidden expenses eg medical.

An enforced holiday in the Bahamas would be the ultimate in stress and depression if you couldn’t afford a decent swimsuit etc and a few extras so you could enjoy it. I’d probably spend the weekend in the hotel room worrying about how the electricity would be cut off by the time I got back home.</description>
		<content:encoded><![CDATA[<p>Interestingly enough this sort of question came up with my husband’s company.</p>
<p> Upon production of receipts, the company would reimburse its employees for water and energy bills up to $2,000 in each financial year. A few earnest souls decided that this reimbursement might encourage employees to waste water and energy – highly unlikely for the vast majority of people, but never mind. These same earnest souls proposed that, instead of this reimbursement, the company offer holiday vouchers to the value of $2,000. Fortunately the idea was canned and the benefit has now been tweaked so that employees receive a cash benefit for the amount not claimed by the end of the financial year.</p>
<p>The problem with offering holidays rather than cash is that some employees desperately need the cash for basics. The number of working poor seems to be increasing and it’s hard to predict who the working poor might be simply by their salaries because some people have very costly hidden expenses eg medical.</p>
<p>An enforced holiday in the Bahamas would be the ultimate in stress and depression if you couldn’t afford a decent swimsuit etc and a few extras so you could enjoy it. I’d probably spend the weekend in the hotel room worrying about how the electricity would be cut off by the time I got back home.</p>
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		<title>By: Rodolfo Araujo</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2148</link>
		<dc:creator>Rodolfo Araujo</dc:creator>
		<pubDate>Sun, 05 Oct 2008 17:31:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2148</guid>
		<description>A bonus in cash may go away in a blink of an eye: you may lend it to your brother-in-law, pay an old debt with a neighbor or even fix something in your car. My point is: it will not always provide you with a joyful and memorable experience. It might fade away very quickly. A trip, on the other hand, will probably be imprinted on your memory for a long time.</description>
		<content:encoded><![CDATA[<p>A bonus in cash may go away in a blink of an eye: you may lend it to your brother-in-law, pay an old debt with a neighbor or even fix something in your car. My point is: it will not always provide you with a joyful and memorable experience. It might fade away very quickly. A trip, on the other hand, will probably be imprinted on your memory for a long time.</p>
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		<title>By: Luke</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2147</link>
		<dc:creator>Luke</dc:creator>
		<pubDate>Tue, 24 Jun 2008 03:39:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2147</guid>
		<description>While I would appreciate the trip to the Bahamas to be sure, I am used to working for employers that don&#039;t give anything, I would want the money.

I may be jaded from working in my current industry but  I believe loyalty needs to be to yourself and not to a company.

It does raise an interesting question about how companies can build loyalty but the deep down honest answer in my opinion is that they can&#039;t.

This isn&#039;t the days of Mom and Pop companies that allowed people to work there forever and understood personal intricacies.  This is the era of the corporations that are only interested in their bottom line which in turn makes the employee dwell in that concern as well.

Sorry if this comes off as pessimistic I am just being honest.  Love the blog.</description>
		<content:encoded><![CDATA[<p>While I would appreciate the trip to the Bahamas to be sure, I am used to working for employers that don&#8217;t give anything, I would want the money.</p>
<p>I may be jaded from working in my current industry but  I believe loyalty needs to be to yourself and not to a company.</p>
<p>It does raise an interesting question about how companies can build loyalty but the deep down honest answer in my opinion is that they can&#8217;t.</p>
<p>This isn&#8217;t the days of Mom and Pop companies that allowed people to work there forever and understood personal intricacies.  This is the era of the corporations that are only interested in their bottom line which in turn makes the employee dwell in that concern as well.</p>
<p>Sorry if this comes off as pessimistic I am just being honest.  Love the blog.</p>
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		<title>By: Ben</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2146</link>
		<dc:creator>Ben</dc:creator>
		<pubDate>Fri, 30 May 2008 23:29:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2146</guid>
		<description>I wonder if my employer would mind if I skipped a week of work, but sent him a bottle of expensive champagne and a trip to the Bahamas instead..? Could I just send gifts and never show up..?</description>
		<content:encoded><![CDATA[<p>I wonder if my employer would mind if I skipped a week of work, but sent him a bottle of expensive champagne and a trip to the Bahamas instead..? Could I just send gifts and never show up..?</p>
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		<title>By: Chandra</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2145</link>
		<dc:creator>Chandra</dc:creator>
		<pubDate>Fri, 30 May 2008 15:43:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2145</guid>
		<description>To much thought process goes into the obivious soliution let the Adult free thinking employees make that decision on what is best for them after they have made the decision sent out a memo asking them will this make them a better employee,more loyal etc. LOL</description>
		<content:encoded><![CDATA[<p>To much thought process goes into the obivious soliution let the Adult free thinking employees make that decision on what is best for them after they have made the decision sent out a memo asking them will this make them a better employee,more loyal etc. LOL</p>
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		<title>By: Ivan</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2144</link>
		<dc:creator>Ivan</dc:creator>
		<pubDate>Thu, 29 May 2008 12:23:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2144</guid>
		<description>Another research, Ran Kivetz has studied this and came to the same conclusion. However, if presented differently: you gave people a chance to win $1,000 for doing something (like filling out a form while in a store) and you gave a separate group of people a chance to win a trip to the Bahamas valued at $1,000 (same store, different day). Which contest gets the best results. According to Kivetz, the Bahamas wins. Even though people would choose cash over a trip, in isolation the trip (Kivetz calls it a hedonic reward) actually more positively motivates behavior.</description>
		<content:encoded><![CDATA[<p>Another research, Ran Kivetz has studied this and came to the same conclusion. However, if presented differently: you gave people a chance to win $1,000 for doing something (like filling out a form while in a store) and you gave a separate group of people a chance to win a trip to the Bahamas valued at $1,000 (same store, different day). Which contest gets the best results. According to Kivetz, the Bahamas wins. Even though people would choose cash over a trip, in isolation the trip (Kivetz calls it a hedonic reward) actually more positively motivates behavior.</p>
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		<title>By: Nora Miller</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2143</link>
		<dc:creator>Nora Miller</dc:creator>
		<pubDate>Wed, 28 May 2008 23:54:40 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2143</guid>
		<description>The range of replies here suggests that the original proposal is probably too limited in scope. For many people, a $10 bonus would mean a great deal, while for others, dheath, $6000 seems like a normal amount. People sometimes find it hard to extrapolate from the theoretical to the personal. Perhaps if the proposal had used a percentage instead of a dollar amount....

On the other hand, I have seen no comment on the subject that occurred to me right away: I would much rather my employer offered me a bonus that thoughtfully reflected my needs: if she knows I don&#039;t earn as much as I&#039;d like to, I&#039;d like her to offer me the cash to help make up for the deficit. If she knows I need the time off because work has been hectic, I like her to offer me the time off, and sure, help with expenses so I can actually vacation and not just stay home for a few days. I appreciate Bernie&#039;s comments regarding the unnecessary dilemma that making the employee choose would generate.

Bottom line, as I see it, is that people want to *matter* to those around them. If I think my employer is trying to manipulate me, like Doctor Jay says, then no &quot;bonus&quot; will be seen as generous or welcome, because the underlying trust obviously doesn&#039;t exist. Even an employer who pays minimum wage can make employees feel valued, and even a six figure salary won&#039;t make up for a boss who doesn&#039;t give a damn about who works for him. Either you *matter*, in which case, your boss does what she can to make you feel it, or you *don&#039;t*, in which case your boss probably won&#039;t make an effort to offer a bonus you would actually appreciate.</description>
		<content:encoded><![CDATA[<p>The range of replies here suggests that the original proposal is probably too limited in scope. For many people, a $10 bonus would mean a great deal, while for others, dheath, $6000 seems like a normal amount. People sometimes find it hard to extrapolate from the theoretical to the personal. Perhaps if the proposal had used a percentage instead of a dollar amount&#8230;.</p>
<p>On the other hand, I have seen no comment on the subject that occurred to me right away: I would much rather my employer offered me a bonus that thoughtfully reflected my needs: if she knows I don&#8217;t earn as much as I&#8217;d like to, I&#8217;d like her to offer me the cash to help make up for the deficit. If she knows I need the time off because work has been hectic, I like her to offer me the time off, and sure, help with expenses so I can actually vacation and not just stay home for a few days. I appreciate Bernie&#8217;s comments regarding the unnecessary dilemma that making the employee choose would generate.</p>
<p>Bottom line, as I see it, is that people want to *matter* to those around them. If I think my employer is trying to manipulate me, like Doctor Jay says, then no &#8220;bonus&#8221; will be seen as generous or welcome, because the underlying trust obviously doesn&#8217;t exist. Even an employer who pays minimum wage can make employees feel valued, and even a six figure salary won&#8217;t make up for a boss who doesn&#8217;t give a damn about who works for him. Either you *matter*, in which case, your boss does what she can to make you feel it, or you *don&#8217;t*, in which case your boss probably won&#8217;t make an effort to offer a bonus you would actually appreciate.</p>
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		<title>By: dan</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2142</link>
		<dc:creator>dan</dc:creator>
		<pubDate>Wed, 28 May 2008 17:50:57 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2142</guid>
		<description>Reaction to dheath

Despite Microsoft&#039;s reputation I suspect that paying people to search is going to set a negative image and reference point for this service and this will create a long term barrier for its use</description>
		<content:encoded><![CDATA[<p>Reaction to dheath</p>
<p>Despite Microsoft&#8217;s reputation I suspect that paying people to search is going to set a negative image and reference point for this service and this will create a long term barrier for its use</p>
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		<title>By: jo</title>
		<link>http://danariely.com/2008/05/25/motivating-employees-with-cash-or-gifts/#comment-2141</link>
		<dc:creator>jo</dc:creator>
		<pubDate>Tue, 27 May 2008 21:52:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.predictablyirrational.com/?p=239#comment-2141</guid>
		<description>Wow! As financially tight as I am right now...and the low-end of salaries based on my job position...I completely disagree with your statements on loyalty. If my employer would raise my salary even by $1000 I could afford some basic needs....such as buying a pair of glasses to replace the cracked pair going on 4+ years, buy my monthly prescriptions as necessary... I would be more than loyal, as i already am, but extremely grateful.

The money please. Maslow&#039;s hierarchy</description>
		<content:encoded><![CDATA[<p>Wow! As financially tight as I am right now&#8230;and the low-end of salaries based on my job position&#8230;I completely disagree with your statements on loyalty. If my employer would raise my salary even by $1000 I could afford some basic needs&#8230;.such as buying a pair of glasses to replace the cracked pair going on 4+ years, buy my monthly prescriptions as necessary&#8230; I would be more than loyal, as i already am, but extremely grateful.</p>
<p>The money please. Maslow&#8217;s hierarchy</p>
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