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Cash Bonuses or Time Off?
What rewards do employees prefer? Plus, how to explain why you quit a lousy job and how to write more effective memos.
By Anne Fisher, FORTUNE senior writer

Dear Annie:
I recently took a job as head of business development for a mid-sized financial firm. My predecessor in this position used to reward staffers for particular accomplishments (meeting a tough deadline, landing a big new client, etc.) by giving them things like impossible-to-get theater tickets to a hit show, a day at a spa, or even a trip to Disney World. These things are fun, obviously, but I think people would rather have cash, so they can do with it whatever they wish. What do you think?
-- Big Carrot, No Stick

Dear Big Carrot:
When budgets are tight, many employers like to reward people with "non-monetary perks like extra time off or a party," notes Max Messmer, chairman of staffing giant Accountemps (http://www.accountemps.com) and author of Motivating Employees for Dummies (John Wiley & Sons, $24.95). "But employees also expect financial compensation for their efforts, which can be an effective retention tool." A few months ago, Accountemps surveyed more than 1,400 chief financial officers nationwide, asking them to rank the effectiveness of several rewards for outstanding performance. Just 17% said that extra time off is the sweetest carrot; 16% chose "a departmental lunch or social gathering." By contrast, almost half -- 46% -- agreed with you: They voted for cold, hard cash. (Interestingly, 15% of those CFOs said they don't believe in bestowing rewards at all. Guess who's going to have trouble keeping top people as the job market heats up again?) To test the waters where you are, why not try offering people a choice between a prize and its cash equivalent? If the prize is something money can't buy (like those impossible-to-get theater tickets you mentioned), you may get some takers.

Dear Annie:
Help! About a year ago, I left my hometown and moved across the country for a new job -- only to find that the company has a hostile and aggressive culture where senior people are always yelling at everyone below them. Besides that, executives engaged in ethically questionable behavior and expected us to "go along" in ways that made me extremely uncomfortable. Long story short, I quit and moved back to the city I came from, where I'm now starting a job search. What do I tell interviewers about why I left that job, without badmouthing my former bosses? - Closed Mouth

Dear Closed Mouth:
Yikes. Sounds like you made the right decision. Luckily, human beings are complex creatures and very often do things -- including quit their jobs -- for more than one reason. So ask yourself this: If the culture at your former place of employment had not been obnoxious and unethical, what else might have induced you to leave? For example, do you have skills that were not being used to full advantage in that job? Or was your upward career path in the company unclear or non-existent? Whatever inherent drawback the job had (and, let's face it, all jobs have at least one or two), focus your remarks on that when asked why you quit. In your case, a desire to move back to your hometown might turn out to be all the explanation you need.

Dear Annie:
What do you do with a star employee who can't communicate in writing? I recently hired a very bright, creative, energetic young person to do special projects for our conference-planning business, and so far he's been phenomenal, except for one thing: His memos are jumbled and his written proposals are all but unreadable. Can you recommend a course he could take, a book he could read, or something? -- Tired of Translating

Dear Tired:
Have I got a book for you -- or, more accurately, for your semi-literate star. Have him take a look at Writing That Works: How to Communicate Effectively in Business by Kenneth Roman and Joel Raphaelson (Quill paperback, $13.00). At only 191 pages, it's a little gem, loaded with lively, lucid pointers on writing memos, reports, presentations, proposals and letters that are clear, concise, and get the job done. The authors offer foolproof instructions for writing memos, but they note that, in our Internet age, a blizzard of paper may just slow things down. The authors suggest that everyone should ask themselves, before committing anything to paper, whether it's really necessary at all: "An Italian proverb says, 'Think much, say little, write less.' Sometimes the most efficient delivery of a message is still face-to-face. Just drop by the other person's office." As for proposals, here's a succinct tip that may help your wunderkind get to the point: "Never fail to answer the main question your audience is asking, however silently: ' What's in it for me? '"

Last week, in response to a reader signed "Looking Before Leaping", I asked for your experiences and insights on the subject of working for big companies versus small ones, and wow! So far, the mail is running four to one in favor of outfits with 50 employees or fewer. Comments are still coming in, so I'll pass along a sampling in a couple of weeks. Thanks, all!

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