Posted in: Benefits, In this week's e-newsletter, Latest News and Views, Pay, Performance
Does dangling more money in front of people result in better productivity and quality? Not if that’s all your company does.
Wharton School research does show that financial rewards can increase performance by 42-49%.
But as most managers know, employees who rush to get a job done, hoping to earn more cash, aren’t necessarily doing the company any favors.
The research goes on to say that relying solely on cash rewards generally encourages the following negative behaviors:
- cutting corners
- resentment from hard-working employees who wind up earning less, despite the fact they consistently follow the company’s rules and regulations to the letter, and/or
- a lack of unity, as most employees are only interested in taking part in activities that directly contribute to them earning additional bonuses.
What gets better results, in addition to cash:
- provide more autonomy to employees who’ve proven they can manage themselves
- offer the opportunity to earn certifications, attend seminars, tradeshows and/or conferences
- hold public recognition ceremonies, and/or
- instill a sense of job security by offering senior positions or tenure to veteran employees who’ve contributed a great deal to the organization.