Bob Nelson is the author of 1001 Ways to Reward Employees, which has sold 1.5 million copies. His premise is that while money is important to employees, thoughtful recognition motivates them to perform at higher levels. His critics contend that incentives such as parties and other treats are foolish and condescending. They feel that "throwing baubles and trinkets" is not a solution to low morale and high turnover.

Nelson counters by saying that the system isn't the problem, but rather it's the relationships employees have with their managers that are critical to productivity and performance. The effectiveness of the use of meaningful rewards has been substantiated by more than a century of research, according to Nelson.

Nelson's message is a harder sell in a soft economy, when many managers feel employees should just be happy to have a job. According to a 2001 study, more than half of U.S. corporations with 1,000 or more employees do not use incentives. He points out that managers need to think about what their employees need and what's important to them when they design incentive programs. He encourages managers to reward employees daily. The item is less important than the action. He encourages managers to think beyond monetary rewards. Alfie Kohn is one is Nelson's biggest critics. He believes that rewards cannot improve performance, and points out that there is a lot of research showing that the more people are rewarded, the more they actually lose interest in the work they're doing. He contends that the problem is with the workplace itself, and that employers motivate their employees by making sure they like their jobs and are involved in decision-making. Workplace consultant Carleton Kendrick views rewards such as the boss serving ice cream to employees as condescending and "one-shot deals of happy-feel-good." He says workers want more ways to help balance work and life, and would rather earn more money than receive rewards.

Nelson agrees that the best motivation comes from within, but points out that most jobs are not intrinsically motivating. Meaningful rewards are motivating.

Nelson's research shows that most managers don't give rewards because they don't have time, their employees didn't value previous rewards, or they're worried that employees will take advantage of them. He counters this by showing the financial consequences of not rewarding employees, such as the cost of turnover. He emphasizes that rewarding employees is easy and inexpensive, and almost always has a lasting impact.