Employee incentives that don't cost money.

"While money is important to employees," says management consultant Bob Nelson, "what tends to motivate them to perform--and to perform at higher levels--is the thoughtful, personal kind of recognition that signifies true appreciation for a job well done." Nelson, whose 1001 Ways to Reward Employees recently zipped up the business best-seller lists, argues that the most powerful rewards often involve little cost and a minimum of bureaucracy. "A sincere word of thanks from the right person at the right time can mean more to an employee than a raise, a formal award or a whole wall of certificates or plaques," he says.

Some examples of low-cost motivators:

* Thank-you notes: A short and sincere "letter of praise"--or even a quickly scribbled note on a business card or on the employee's paycheck envelope--sends a surprisingly powerful message, Nelson points out. Most important: Send the note quickly. "To be effective, rewards need to be given as soon as possible after the desired behavior or achievement."

* Public praise: "Look for every opportunity to publicize your outstanding performers," Nelson suggests. A "hall of fame" photo gallery, public announcements of bonuses, and appearances at product launches and annual meetings are all good ways to showcase high-performance employees. At Xerox, "when an employee is recognized, a bell is rung in the corridor." At Bell Atlantic Cellular Telephone division in Philadelphia, management names cell sites after top employees.

* Pass-around awards: At Sherpa Corporation an old bowling trophy that is "ugly, gaudy and huge" is used as a "pass around award" for spectacular achievements, Nelson says. At Hewlett-Packard the "golden banana award" (originally taken from a manager's lunch) has become one the most prestigious honors bestowed on any employee.

* The high-performers club: An inexpensive way to reward top performers (usually salespeople) is to create an exclusive "club" with special membership perks. A good model, Nelson suggests, is the "Million Dollar Roundtable" that insurance companies use to honor outstanding sales reps.

* Team awards: It's usually best to single out individual high-achievers, says Nelson, but there are occasions when a whole team's work should be rewarded. A good example: Apple embossed the signatures of every member of the original Macintosh development team on the inside of the computer's case. Parties are another good way to recognize team efforts, he adds, especially if there's something special about the event--like the camel that Microsoft hired for a party honoring programmers on a project code-named Cairo, or the free trip to Hawaii that WordPerfect once gave to its entire workforce.