The vast majority of corporations use some form of incentives and rewards to motivate their employees by tying them to the performance index. But the striking thing is a rarely discussed idea that employees can do a better job when promised some sort of incentive.
According to various studies, workplace, classroom, and other settings, rewards typically undermine the procedure they want to enhance.
The studies recommend that the failure of given incentives is because of a glitch in that program than the psychological assumptions and their inadequacy that crushed all such plans.
The directly responsible thing for such programs is behaviorist theory derived from work. It is as piece-work pay for factory workers, stock options for top executives, special privileges to the employee of the month, and commission for salespersons.
Indeed, numerous consultants are based on creating the latest formulas for calculating bonuses to wave in front of employees. Some people promote teamwork, participation management, improvement in the workplace, and the urge to use rewards to maintain the reforms of the institute.
Do rewards work? The answer might depend on what we mean by work. According to the research, rewards only secure one thing, which is temporary compliance, in terms of producing lasting change in attitude and behavior, but rewards like punishment are ineffective.
People will revert to their old behavior once the rewards run out. Rewards do not make any lasting commitment. They temporarily change what we are doing. The question for managers is whether incentives can work when the motivators do not.
Why Rewards Fail
Rewards can buy temporary compliance, and it is harder to spot the harm they cause. Moreover, most of us do not suspect the dividends. Let’s consider the following six points that will examine the actual cost of an incentive program.
Pay is not a motivation
W.Edward Deming presents a statement that money can buy the things people need and desire. Furthermore, they will be more concerned about financial matters if their pay is less.
Indeed, we can say that in the last decade, studies show that money heads the list of things that matter the most.
Numerous executives know that coercion and fear can destroy motivation, as a result, creates defiance, defensiveness, and rage. They understand that punitive management is like a dichotomy.
Reward Ignore Reasons
To solve any problem in the workplace it is significant to understand the reason behind it. Are employees ready for the responsibilities? Are employees can’t collaborate effectively?
This kind of situation requires different solutions. But depending on incentives to enhance productivity will not solve the problems.
Rewards Discourage Risk-Taking
When people are encouraged to consider what they will earn after doing a task, they are less likely to take risks or explore opportunities. The casualty of reward is creativity.
Managers who insist that the job won’t get done right without rewards fail to represent any argument for manipulation of behavior. The promise of rewards to the unmotivated employee is like offering salt to someone dehydrated. Bribes can’t work adequately in the workplace.