Whether you’re a business owner hiring employees for your small business or an agency manager adding rock star employees to your team, you might think that the best motivator for the people you hire is more money. You’re not alone. Many companies pay their employees based on performance. This can take the shape of bonuses when a milestone is hit, gain or profit sharing which offers cash when the company sees profits increase, or skills-based rewards when employees attend yearly trainings.

However, a new study conducted by Human Resources Management Journal has shown that performance-based pay often leads to higher stress levels and decreased job satisfaction.

Why is this?

It’s because many individuals associate performance-based pay with the expectations of being overworked and underappreciated. Performance-based pay can come across to employees like you’re requiring them to push themselves past their limits, work long nights and weekends, or generally offset their work-life balance just to increase profits for the company.

With increasing news coming out about Americans being overworked with less vacation time and sick pay and some of the lowest parental leave policies in the world, it’s not an incentive anymore to work harder and faster and for more money.

Here’s some ways you can incentivize your employees outside of offering them more money:

Increased Vacation Days or Sabbaticals

Everyone loves vacation and a time to unplug and recharge, yet most companies only offer two weeks of paid vacation a year. If your employees are motivated by time-off with their families and travel (because who isn’t, really), then offer the opportunity for them to earn an extra week or two of vacation a year based on their performance.

Offer Internal Recognition and Rewards

Create a system that publicly rewards your top-performing employees. When someone feels recognized for their hard work, this can go a long way in motivating them to work hard and perform their best. It can also motivate others to achieve those top rewards in the future.

Schedule Workplace Retreats

Even if you can’t offer additional PTO, planning a short workplace retreat for your employees can feel like a vacation; plus it works double to create team building and bonding among your team. Even something simple like renting a cabin in the woods for everyone to spend the weekend, and creating group meals or playing games can be a great incentive that will have employees saying, “Man, I work at a great company.”

Increased Workplace Perks

If your employees are incentivized to work hard by great perks, this can work wonders for employee morale. Offer company lunches, game time, motivational speakers, movie days or anything that makes it feel like you’re a “cool” place to work rather than a place that will work them to the bone. When employees feel happy about their workplace and want to come in every day into a well-designed office with places to hang out and relax during their work day, they’ll likely be more motivated to perform well so they don’t have to leave and find another job somewhere with fewer perks.

Remember, offering other incentives like this doesn’t mean you can underpay your employees. But if you offer competitive financial compensation packages plus these incentives, then your employees might feel like they have a great workplace to walk into, a work-life balance and a recognition program that makes them feel like an important part of the team. All of these will go a long way in keeping employees motivated to work hard for you, rather than feeling like you’re overworking them for more cash.

Whatever you do, have an open conversation with your employees on how their compensation packages are working for them, and if it’s motivating them to bring their best every day. It’s very difficult to find and retain great employees, so don’t be afraid to shift your perks and benefits to avoid losing great people.