When your employees do something really awesome, recognising them for their hard work goes a long way in keeping them motivated.

There is a general belief that pumping more money into employees’ bank accounts gets them more motivated to do their jobs well, however a study has found money is not in fact the motivator that keeps employees satisfied. Employees need more than money to be fulfilled in their jobs.

So companies that have to cut back on financial incentives should not despair – they should be looking for new ways to inspire their top talent.  

If Cash is not King, then what is?

McKinsey Quarterly conducted a study to find out what incentives motivate employees, and while more money was a factor, it wasn't the most effective way of motivating employees.

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So what can you do to improve your employees’ morale and overall job satisfaction:

Make your ideas theirs

If you’ve been patting your team on the back for delivering on what you told them to do, you’re doing it wrong. Nobody likes being told what to do. Although your team members may not say it, they are probably thinking about it.

Instead of handing down orders, ask your employees to do something in such a way that it makes them feel that they are the ones coming up with the ideas. Turn your “I’d like you to do this in this way” to “How do you think we should do this?”

Make leaders in everyone

Make a habit of identifying and working off your employees’ best strengths. Also, show them that their excellence is appreciated by encouraging them to be an example to the rest of the team. In this way, you’ll easily set the bar high, and they’ll be motivated to always live up to their recognition as exceptional leaders.

Give credit where credit is due

Everybody loves the limelight shone on them from time to time. And if it’s recognising their improvements, they’ll love you for it and be encouraged to perform at their best all the time.

But remember that while some employees are more than happy with public recognition, others will feel embarrassed and awkward, and would much rather it came in an email or in a one-to-one meeting.  It’s also important to consider who you’re praising your employee in front of. Even if an employee may not like the public recognition, they’ll generally appreciate it if in an email you include the senior manager or CEO.

Involve other team members

If your team can do without a project lead or supervisor, don’t hire them. Rather than having one individual to make the final call all the time, use the opportunity to empower your employees to collaborate on ideas and projects themselves.

By giving your employees the authority to work together as a team on an equal level, you'll indirectly give them loads of determination and enthusiasm to do their bit to meet the team’s needs. Plus because they’ll be working together on a daily basis, they’ll recognise each other’s contribution, which will go a long way in creating a culture where praise is the norm.

Share in the good and bad times

When your team does well, celebrate the achievement with a team outing, a picnic, happy hour, etc. Team gatherings are always the best time to let everyone know how much you appreciate the work they put in. Don’t be afraid to pull out all the stops to show gratitude for your employees’ hard work.

Share in the sorrows too. Your team works really hard, and they deserve to know when things aren’t going well too. Be honest and truthful.

While financial rewards such as salary raises and company benefits are attractive to employees, non-financial incentives do wonders in boosting employee morale. So don't be afraid to give an applause when an applause is well deserved.