Do financial incentives always work?

Might seem to be extremely attractive but in actuality this generation of workers don’t give much importance to monetary or financial incentives. More than these are interested in gaining their employer’s trust and proving their worth to the organization beyond tangible benefits. Therefore organizations are planning for better motivational tactics which will not just recognize the worker’s contribution in monetary terms but also make an effort towards making their efforts count with the help of other intrinsic and extrinsic rewards, which go beyond bonuses or incentives.

Rewards are of course important part of the entire equation at work, but making that obvious often loses the charm of the entire exercise of motivation. Employers can also consider techniques like employee empowerment and delegating the responsibility to the right people at the right time. This will definitely increase the chances of attaining the required results without spending the organization’s resources for such a myopic plan.

This apart, the employees have been observed to respond better to such intrinsic rewards and also give more value to them as they entail a far greater opportunity to make a mark in the industry. The system of financial incentives has even been said to be flawed to certain extent as they reduce the surprise factor and the employee almost end up waiting for their turn rather than performing to their best of capabilities.

Moreover, research has also proven that intrinsic rewards are more effective in inducing employees to give their best as the self motivated lot doesn’t need much of financial incentives to prove their worth. They aim to give their best because they love their job and this automatically leads them to the path of financial rewards, while the other group of employees (waiting for their turn in the rewards scheme) end up measuring their performance in terms of the rewards that they receive and are hardly able to reach that required standard of performance.

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