For tens of years organisations have focused their attention on seeking the best way to reward and pay bonuses to their people to increase productivity, improve workplace relations and ultimately improve the bottom line of the company.
Throughout this time there has been varying levels of success and it is interesting to see the results of recent studies that may be telling us we are doing it all wrong.
The link below shares a video of Daniel Pink, a career analyst, and his discovery confirming that social scientists know what most managers do not – that is, traditional rewards are not always as effective as we think.
Daniel shares with us that the traditional reward system that most organisations currently use is only partially effective in environments or organisations where mechanical skills are being measured. Here, there is a direct link with increased rewards resulting in increased performance.
However, what is very interesting to note is that where any element of cognitive skills are being used, increasing rewards leads to a decrease in performance. This result has been known for many years yet organisations continue to push the traditional reward and recognition systems in their organisations and are expecting significantly improved results.
RdL has assisted organisations across a number of countries and of varying sizes design and implement a reward system that drives the key measures of success for their operation. If you would like to discuss reward systems in more detail then please email or call and we would be happy to share our experiences.
