Project Team Rewards
Appendix VII: Example of Reward Utility vs. Reward
Rehu et al. (2005) explain in their paper that the more reward a person gets, the higher
the utility of the reward for the person and the higher the motivation to get the reward. On
the other hand doubling the reward (e.g. doubling the money) does not double the
motivation. The additional utility becomes less, the higher the reward gets. Rehu et al.
(2005) provide an example. Employees in Germany get comparatively more holidays than
US employees therefore their value of additional holidays is consequently less.