It should be anticipated that if deserved recognition is not forthcoming within the University, faculty will seek it elsewhere, leading to the loss of valued colleagues.
Salary is the most important incentive.
It has a value relative to the salaries of others in the same discipline. The absolute value of salary, while important, is less significant unless one is considering a job offer at another institution. Intangible acknowledgements of effort and achievement are also extremely important to faculty and staff morale.