What Are the Cons of Incentives? - Deepstash

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What Are the Cons of Incentives?

What Are the Cons of Incentives?

  1. Create conflict: those who don’t receive incentives may be jealous of those who do regardless of merit. Those who receive incentives might also be upset if they worked harder than others to get the same reward.
  2. The focus of work becomes competitive instead of being focused on quality and people will only work as much as it takes to earn the incentive.
  3. It eliminates productivity for everyone except top performers who are more benefited by incentives. 
  4. Incentives can become quite costly as they need to continue to rise on a scale of cost in order to remain effective.

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MORE IDEAS FROM THE SAME ARTICLE

  1. Having a good salary and benefits package is great, but having extra incentives for a job well done makes workers feel appreciated. That decreases turnover and increases profits.
  2. Offering incentives for a good job creates a sense of caring or kinship in the worker and, over ti...

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Tips To Establish A Benign Incentives Program

  • Ongoing feedback from both customers and employees can help provide an indication of how well these programs are working.
  • Deal with issues directly and transparently to ensure that employees are clear about the program’s expectations and goals.

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The Psychology of Incentive Plans

Incentive plans, by definition, are supposed to affect people's behavior on the job, day in and day out.

If people know their job performance is linked to an incentive like a quarterly bonus, they'll likely develop new ways to produce better results. They'll naturally i...

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  • Goals and objectives should be clearly defined for staffers.
  • Workload should be equitably distributed to avoid resentment from staffers who feel they have to carry poor-performing team members.
  • Consider both individual and group incentives to promote the...

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