When it comes to motivating teams to execute a strategy, financial incentives like bonuses, commissions, and stock options often take center stage. While these rewards are effective, they don’t tell the full story. One of the most powerful, yet often overlooked, motivators in the workplace is social incentives. Recognition, accountability, and the need to belong frequently prove just as effective—if not more—than financial rewards in driving engagement and performance.

Monetary rewards alone rarely keep people motivated day in and day out. What truly drives many of us is a sense of purpose, recognition from our peers, and a personal connection to the work we do. Almost all of us want to feel like we’re part of something bigger and that our contributions matter. In fact, neuroscience shows that when we receive recognition, the brain’s reward centers light up in much the same way as when we receive financial compensation. This means social incentives are wired into us, deeply influencing our behavior at work.

Research from The Review of Economic Studies confirms that employees perform better when they feel socially connected to their colleagues, even in the absence of financial rewards. This happens because strong peer relationships foster accountability—not just to managers but to one another. When teams feel responsible for each other’s success, they are more likely to stay engaged and committed to the work.

Even simple actions, like words of encouragement from a colleague, can trigger the brain’s reward system. This is the power of positive peer pressure. When done right, peer accountability can drive performance well beyond what traditional, formal measures of accountability can achieve. But as ClientCentric notes, it’s important to get this balance right—positive peer pressure elevates performance, while negative peer pressure can have the opposite effect, leading to disengagement or burnout.

To ensure that social incentives enhance strategy execution, leaders need to set up structures that activate these motivators. Creating environments where teams feel accountable to each other, not just to leadership, cultivates a sense of ownership and responsibility. This becomes especially important in the execution phase when peer recognition and accountability play a critical role in maintaining momentum.

One of the most impactful social incentives leaders can offer is the chance to lead career-defining projects. When employees are given the opportunity to work on high-visibility initiatives—whether it’s launching a new product or leading a strategic transformation—they are more likely to invest fully in the work. These projects are not just about driving the company’s goals, they also provide employees with opportunities to enhance their reputations and build their careers.

Along with peer recognition and career-defining opportunities, it’s equally important to build systems for team-based accountability. This is where frequent and open status updates become crucial. Regular updates—delivered to the entire team, not just leadership—serve two key purposes: first, they keep everyone aware of dependencies between teams and individuals, helping avoid miscommunication or bottlenecks. Second, they transform what could feel like a tedious reporting task into an exercise in team accountability. When updates are framed as a way to keep peers informed, they build a shared sense of responsibility and collaboration. The added bonus is that leadership also stays in the loop, but the primary goal is to strengthen team dynamics and ensure mutual support.

Here are some actionable steps you can take to set up social incentives that will help drive execution:

1. Encourage Open Status Updates: Regularly update the broader team—not just leadership—on project progress. This ensures that everyone is aware of dependencies and helps prevent bottlenecks, while also creating a culture of accountability. By directing these updates toward the team, it becomes an exercise in peer accountability rather than a tedious report to leadership. As a bonus, leadership can use these updates to stay informed, but the primary focus is building mutual support and responsibility across the team.

2. Foster Peer Recognition: Build a culture where employees regularly acknowledge each other’s contributions. This can be through formal peer-to-peer recognition programs or simply making recognition a standard part of team meetings and updates. When employees feel valued by their peers, it boosts engagement and sets a positive tone for execution.

3. Establish Team-Based Accountability: Set up team goals in addition to individual goals. When success depends on everyone’s contribution, peer accountability naturally kicks in. This collective responsibility is crucial for maintaining motivation and engagement during the execution phase.

4. Create Career-Defining Projects: Identify key initiatives that give employees the chance to lead or take ownership. These should be high-visibility projects aligned with the company’s strategic goals. When employees know their work will be a defining part of their career, they are far more motivated to succeed.

5. Set Up a Public Recognition System: Regularly celebrate wins—both big and small—across the company. Public recognition boosts morale and reinforces the value of social incentives. Employees are more likely to work hard when they know their efforts will be publicly appreciated.

6. Build Feedback Loops Early: Create channels where employees can provide each other with feedback. This can be through formal peer reviews or informal check-ins. Peer feedback is often more meaningful than feedback from managers, and having these systems in place before execution begins can strengthen collaboration.

Social incentives are a powerful and often underutilized tool for driving strategy execution. By setting the stage with frameworks that encourage peer accountability, career-defining opportunities, and a culture of recognition, you can leverage the natural human need for connection and belonging to drive superior performance. While financial incentives certainly matter, social dynamics tap into something deeper, pushing teams to deliver their best work.

Create systems that foster these dynamics, ensuring that your team is motivated not just by a paycheck but by a sense of purpose, responsibility, and pride in their work.

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This post is an excerpt from my upcoming book, a practical handbook for executing strategy from an operator’s point of view. Drawing on decades of real-world experience, it’s designed to help leaders turn strategy into action through clear, actionable steps. Stay tuned for more insights and updates as we get closer to launch!