Some employers reward members of staff for their exceptional contribution to the company by giving them extra money. This practice can act as an incentive for some but may also have a negative impact on others.To what extent is this style of management effective?Are there better ways of encouraging employees to work hard?

In recent years, many companies developed a trend of providing extra money as an incentive to the staff to perform exceptionally fantastic. Many people think that it is a perfect way to

reward

such

hardworking employees whereas some argue it to be a malpractice affecting the others detrimentally. The proponents of the former school of thought have obvious reasons for which the above practice holds benefits to the organization.

Firstly

, bonuses encourage the staff to work more towards the achievement of the goal. They receive a sense of satisfaction that their hard work is not getting wasted and is paying off for them well.

Secondly

, financial

reward

acts as a proper appreciation to those who push themselves more than the others. The employer provides an extra economic support to the ones who worked day and night and presented themselves in a unique manner that is going to turn advantageous to them only. In a recent survey conducted by a national business magazine of 2018, in India, 85% of the employees were delighted with their salary, bonuses accounting for 43% of the profit gained by the

company

.

However

, the antagonists believe that there are many other ways to motivate the employees

such

as promotion and psychological boosts by worthy praise, get-togethers, parties and bonding sessions. Promoting the valuable assets of the

company

to a proper designation can create magic in the motivation levels. As a result, they work extra hard to achieve a much deserving

reward

.

Furthermore

, an appraisal of the

company

along with employer-employee bonding workshops help in the mental boosting

as a result

of positive yet competitive and constructive working environment, that in turn inspires a tension free performance benefitting the organization. As an instance, many famed multinational companies like TCS, India are following

this

strategy and progressing well.  

Thus

, it can be concluded,

although

providing financial

reward

as an incentive, and has positive impacts in the form of employees encouragement and

company

appreciation, several other alternatives have been presented to us

such

as a rise in hierarchy level and worthy praise by the organization.