Saturday, March 15, 2014

Surprising News about Bonuses that Really Engage Employees

Companies typically hand out bonuses to spur motivation and reward high performance. Most often these bonuses come in the form of financial gifts and the recipients are expected to spend the money on themselves for a special weekend or dinner out.

But do these money rewards achieve leadership’s objective of encouraging improved behavior?

Employee engagement training specialists say that the opposite is true—the other employees are apt to be jealous and competitive and thus the team dynamic is damaged.

What type of bonus does work? 

Surprising to us, studies show that giving bonus vouchers that can be re-directed to the recipient’s favorite charity actually results in happier and more engaged employees overall. Another kind of bonus that works is money gifts that are to be spent on other employees. Think about throwing a team party or catering a Friday picnic lunch. Bonus winners are heroes and their entire team gets to enjoy the benefits of their success.

Our Take
As long as your reward and recognition systems are aligned with your strategy, are perceived as fair and disproportionately reward your top performers in terms of results and behaviors, you will have the opportunity to creatively engage and motivate your top talent to perform at their peak. 

A much happier ending to the bonus story.

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