Do rewards benefit the organization? The effects of reward types and the perceptions of diverse R&D professionals

Previous compensation research has focused primarily on individual benefits derived from monetary rewards and has tacitly assumed that diverse organization members hold similar beliefs regarding the efficacy of specific rewards. This article compares the beliefs held by members of diverse demographic groups in R&D organizations regarding the extent to which different types of rewards produce organizational benefits. Results based on evaluations from over 1000 R&D scientists and engineers across 30 companies found that intrinsic rewards and salary increases were widely believed to provide benefits to an organization, Individual cash rewards were generally seen as providing the fewest benefits. However, members of different ethnic groups and genders held different beliefs about the utility of several rewards. The article concludes by suggesting how similarities and differences in beliefs across a diverse group of employees could affect the management of rewards in R&D settings.