> "Study showed that monetary incentives are great for routine, mechanical work. But how does it play when talking about cognitive, advanced tasks? Not well at all."
https://www.youtube.com/watch?v=dgKKPQiRRag
Counter-counter point: If anyone ever points you to this for evidence _you_ shouldn't get a bonus/monetary reward system, ask if _they_ get a bonus/monetary reward system...
A merit increase at the end of the year stays with you for the rest of your career. A $1,000 bonus is gone as soon as it's spent.
I've seen some organizations that use bonuses to cover over the fact that people aren't getting raises, and I would expect people who do cognitive tasks to be better able to run the math on why that's bad.
A yearly bonus or a "thank you"/party/etc aren't rewards tied to specific tasks. They're meant to be gestures of appropriation. You're discussing a bonus structure that ties financial incentives to very specific work items, and rewards them accordingly.
I'm not disagreeing with your point, just pointing out they're two different topics.
Like what if someone shows up to an event you planned, and starts thanking people for coming. They're basically implying/claiming ownership of the event. Appropriation through appreciation.
In other words what if you thought a project was yours, and then someone appropriates it by thanking your team, implying it was for that person all along?
This to me is the single biggest killer of motivation / productivity. If you've got this problem, I agree with the video that even large monetary rewards won't salvage productivity.
Some people want to feel appreciated, some want to feel like their work makes a difference in the world, and some really are motivated by huge wads of cash.
I feel happier when I get a bonus that brings retirement closer, or lets me give more to charotsbt causes I believe in, or gives me a day off, instead of a throwaway toy or schwag or a gift card or a meal at an expensive restaurant that doesn't serve food I can eat.
The common example is if a daycare has parents frequently turning up late for pick up, so they have to stay open late. So they decided to apply a surcharge for latecomers in a study. The problem got worse, since the the value of the fine was less impactful than the guilt felt by most parents. It was now seen as more acceptable to be late.
Example write-up: http://freakonomics.com/2013/10/23/what-makes-people-do-what...