"..from free films and refreshments at the local theater that Cognex rents Friday nights to company-paid trips abroad for long-serving employees and their friends. The company's biggest individual shareholder, he stopped taking a salary in April 2001 and bonus in 2004. "
Apart from these incentives, he sends free cakes to every employee's home on their birthday and thanksgiving, personally serves ice cream to employees one day a year, and once, treated every employee to dinner for two at a swanky restaurant and a limo service for five hours.
All of these activities reflect the strong views that Dr. Shillman has regarding hiring and motivating employees - "I am meticulous about hiring, and then I'm hands-off.", "Uniqueness is what people like about rewards."
Are these forms of compensation are a better motivator than just cash directly deposited into your bank account?
In wondering this, I looked for some academic research that might support this CEO's philosophy, and was very surprised to find it reflected almost word-for-word in a 2005 paper by two economists at the University of Zurich (Economic Journal, November 2005). Their two main findings are summarized thus:
(1) Goal-oriented intrinsic motivation of agents should be supported by fixed incomes and an extensive selection process of employees; (2) Extrinsic, but non-monetary incentives (e.g. conferring orders and titles) can be used;
Looks like Cognex offers a great empirical testing ground for Drs. Frey and Benz at the University of Zurich!
1 comment:
"Are these forms of compensation are a better motivator than just cash directly deposited into your bank account?"
It depends on what one means by motivation ... In my view , 'motivating' an employee in these ways will not necessarily contribute towards his work efficieny , neither his loyalty to the company he works for ..
At best , it'll develop a strong bond between employee and employer , and they 'might' remain good friends after he quits his job to work for another ... :)
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