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When used correctly, these programs can be very effective motivating tools. However, there are several conditions that must be present in order for this system to successfully motivate employees.
There are several advantages to non-cash incentive programs. Horne states, "?performance based incentive programs serve not only to increase productivity, but also to increase satisfaction and retention" (Horne 74). Employees are more willing to work hard and are happier in their jobs when they are rewarded for their performance. Non-cash incentives are effective tools to recognize employees and can be used often to consistently reward good performance...
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