When designing rewards you should consider employees’ personalities and motivations.
Monetary rewards, no matter how enticing, don’t appeal to everyone. Sometimes, public recognition in front of peers and managers is just as pleasing.
Respect from peers, greater responsibility, and opportunities to do interesting work are all powerful motivators.
On the other hand, some employees prefer to work behind the scenes and not be the center of attention.
A manager must communicate with employees to determine what sort of rewards would suit them best.
Based on my experience, the best compensation packages have a combination of monetary and non-monetary incentives.