Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees

Abstract

Given the struggle that many organizations face hiring and retaining talent in today’s tight labor market, it is critical to understand how to effectively reward employees. To address this question, we review relevant evidence that explains the importance of workplace rewards and recognition. Based on a review and synthesis of the current literature, we make the case that organizations should move beyond salary and traditional cash rewards to place greater emphasis on nonpecuniary, tangible and intangible rewards and recognition initiatives. We further highlight the importance of aligning rewards with universal psychological needs. Finally, we discuss the need to conduct more research to understand when and for whom cash and noncash rewards increase intrinsic motivation, organizational commitment and optimal functioning in order to improve the design and implementation of existing reward programs.