Money
, since its
first
appearance nearly 5,000 years ago, has exerted far-reaching
on every aspect of
life. From being used as a medium of exchange to
as a store of value,
money
has been so widely preferred that some people
that higher salaries were better than other incentives for motivating workers.
From a personal perspective, I strongly disagree with
this
statement, basing on two
unwanted consequences of financial incentives, namely pay inequality and a
in intrinsic motivation.
It is a truth universally acknowledged that the more considerable a monetary reward is,
more likely it is to cause inequality among employees. Apparently, a promotion in
for some workers can arouse the feeling of jealousy from others who do not get
same extra
money
,
thus
having undesirable influences on the overall productivity.
One distinctive example of
this
, taken from a research in the article "The Problem with
Financial Incentives - and What to Do About It", describes the case in which major
baseball teams with greater gaps between highest and lowest payment lose more
than those with a stricter control over paying among team members. The
money
made members at the top feel great and perform better, but at the same
could not compensate for the loss coming from those who are
the bottom. What
more, being paid less than others might create a sense of depreciation for some
. At Google in 2014, multimillion-dollar stock grants were awarded to major
with a view to maintaining important employees. The program
turned out to be a
it raised resentment and
of
in those without the bonuses ("The Problem with Financial Incentives
What to Do About It", 2019). Clear as it may seem, the more does not always mean
better, not to mention the worse.
Not only can a rise in
salaries raiseSuggestion
salaries, raises
salaries raises
unfairness in
it can lead to a decline in
impetus of the workers as well. In his article, Chamorro-Premuzic (2013)
an engagement research
1.4 million employees across 34 nations,
that there was little connection between job satisfaction and pay level. In other
, extra
money
in engagement. To make
worse, there is a
that the more employees focus on a pay rise, the less they concentrate on
work
itself,
thus
enjoy what they do less and less.
This
can be seen through another
-
128 experiments wherein a decrease
36% in
laborerssomeone who works with their hands; someone engaged in manual labor
’
Version: 1
motivation happened when the financial incentives were foreseeable
(Chamorro-Premuzic, 2013). In
this
case, the
money
-relating method produced an
effect on the working spirit of employees by making the financial reward the
goal of the job, not the complement of the product itself. Payment rising is one of
ways, but it surely cannot be entitled the best when applied to motivate workers.
Although
advocates of cash-based incentive might argue that it can make people strive
to perform their tasks,
this
school of thought can be demolished by the method's
“
after-effectSuggestion
Aftereffect
Aftereffects
After-effect
”. The reward itself makes receivers
contemporarilycharacteristic of the present
feel more excited about
work
, but cannot retain their
work
ethic in the long run. An experiment studying the
reaction(chemistry) a process in which one or more substances are changed into others
of employees at a manufacturing facility at
first
showed a slight “up” in
productivity when they were given monetary rewards, yet a “drop” happened
they no longer got them (Rimon, 2016). It is not hard to see that the dedication to
job was gradually distorted by a tangible profit that will have to be raised from time
time. Undeniably, once adopting the cash-based methods, companies will have no
but to stick to it for fear of productivity decrease. And by doing so, an unhealthy
working environmentSuggestion
The working environment
Working environment
is being built, which will eventually ruin the system.
Though the benefits of financial incentive are palpable, it still creates potential
payment inequality and intrinsic motivation
, which may pose a threat to the long-term development of the business.
Thus
,
is advisable to consider alternative means
such
as verbal recognition in encouraging
. Not until the leaders are able to make the
work
itself enjoyable will the
contribute their best to the company.