Engaged employees are more productive than those who are motivated through rewards or recognition, writes Paul Marciano, author of "Carrots and Sticks Don't Work." "Engaged employees are in the game for the sake of the game; they believe in the cause of the organization. Motivated employees are in it for what they can get out of it. When the carrot is taken away, the effort of the motivated employee disappears," Marciano writes.

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