Most companies to hand out incentives and disincentives to help employees improve their performance. Since it is a common practice, many people would assume that it is right and just. But do these really motivate employees?
Rewards and Punishments: Do They Really Work?
Several researchers proved whether rewards and punishments are the best ways to boost employee motivation. A study published in the journal The Accounting Review revealed that the promise of a reward motivates people more than the fear from an impending penalty. Employees will improve their performance better if they have bonuses and other incentives to look forward to.
Another study proves the opposite. An economist from the University of Chicago suggested that people were more likely to motivate themselves more to avoid loss than strive for conditional benefits. Participants who faced the threat of losing their bonuses produced higher student test scores than those with a conventional bonus plan.
Employee Motivation Through Rewards and Punishments
These studies prove that rewards and punishments systems can affect employee motivation in either way. People may work more if a prize is waiting for them. They may also force themselves to work harder as they do not want to suffer the punishment.
On the other hand, it may cause employees to always base their performance on the reward. This means they may still become unmotivated if they do not like the prize or they are used to getting it. Furthermore, using punishments may cause loss of interest and potential turnover for employees.
It’s Up to The Employer
Though rewards and punishments have their benefits and costs, it does not mean that these are not effective. The success and failure of such methods depend on employers.
Companies should give rewards that suit the task, and only when necessary to prevent a culture of expectation. As for punishments, they should set them on the same level with the tasks. Putting too much pressure on employees will cause them to burn out.
Motivating Employees Through Speeches
There are many ways to motivate employees. Talking to your employees through speeches is among them. When it comes to motivational speeches, Brad Montgomery is the one to call.
As a Certified Speaking Professional, Brad Montgomery knows how to speak to the people side of the business. He makes people realize where they are and where they should be through his compelling talks. He helps employees have the right motivation so they can realize their potential.
Click here for more information on Brad Montgomery.