What Are the Cons of Incentives? - Deepstash

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8 Pros and Cons of Incentives - BrandonGaille.com

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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8 Pros and Cons of Incentives - BrandonGaille.com

8 Pros and Cons of Incentives - BrandonGaille.com

https://brandongaille.com/8-pros-and-cons-of-incentives/

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Key Ideas

What Are the Pros of Incentives?

  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 time, it increases the worker’s loyalty and their investment into the welfare of the business.
  3. Having a tangible reward tied to their performance is a simple method of motivation and combats boredom.
  4. They are easy to include in any industry or working environment. The rules which govern how the incentives can be earned must be clear and precise.

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Tips To Establish A Benign Incentives Program
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 ...
The Cons Of Incentive Programs
  • May Encourage Deception: Employees may look for ways to make their performance appear to be good when it isn’t.
  • Misaligned Incentives: poorly conceived ones may incentivize risky and irresponsible behavior that undermines the mission of the company. 
  • Can Lead to Conflict: iI competitive workplaces with limited rewards, employees may engage in bad behavior to get ahead or become convinced that pursuing incentives is a zero-sum proposition and become resentful. 
The Pros Of Incentive Programs
  • Increased Productivity: Rewarding the delivery of tangible results reinforces that good work will be rewarded. 
  • Strengthens Succession Pipeline: Employees often try to improve their skills in the pursuit of incentives, ultimately increasing their own efficiency. 
  • Encourages Retention: A good incentive program increases employee job satisfaction and overall loyalty to the organization.