According to Herzberg, 1968; Bigley, and Steers (2003), motivation has enormous impact on employee’s productivity and performance. In short, organization should also understand on how to motivate their employees. Equally to Mark et al. (1998) and Saadat (2005), motivation is a technique to act employees to exert their expertise to their responsible job in the organization. They found out that a one way to motivate employees is through recognition and rewards but there is a difference impact between rewards and wages. Rewards is base from superior performance while wage is base from their duties at a normal standard
To explain, financial reward is an example of motivation for employees in the organization it means that employees are spends a lot money on the gift directly. Financial rewards have only short term effect on employees and easily forgotten later on in their work place. There are four common financial rewards namely cash, bonus, salary, and praise. Based from the surveyed by Society for Human Resources Management (2009), found out that benefits and compensation are important. A cash bonus is an strategy or serve as extra bonus on the salary to encourage them to work harder and to meet the company goals. In addition, they also found out that six out of ten employees indicated that they would be very likely to resign to their current position if they will have received a 30% salary increased and same benefits packaged offered by another company.
As a matter of fact, Mckinsey Quarterly found that seventy percent (70%) of organizations they use motivation as their strategies to encourage employees. Another result found out that non-financial rewards or recognition serve as better motivator than money.