Firms That Give Employee Rewards Do Better

People Performance Management is a relatively new U.S. business philosophy based on the notion that happy, motivated employees boost profits.

Executive Travel reported companies such as Dell Computer, Southwest Airlines and Starbucks have used this philosophy to great success, said the New York Times Saturday.

The magazine reported offering cash, merchandise or travel incentives is becoming a trend — and firms that institute reward programs on average see a 22 percent increase in performance.

For example, employees who have been with the computer products retailer CDW for more than three years get a paid trip for them and their families to any place in the U.S. when the company hits aggressive annual sales or profit targets.