Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Friday, July 19, 2019 09:30:14 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Getting a bonus at work

photo by

By
10th-Jan-2019       
Comments
Share your thought
Post a comment »
Read all () »

Marylène Gagné Ph.D.
Did you get up on this (hopefully) beautiful Monday morning thinking about the money you will make this week? While some go to a job they love doing, others do it mostly for the money. Even for those who love their job, being paid probably plays at least a small role in why they keep going to work day after day. After all, we have bills to pay, we have to pay the rent or the mortgage, and we need to put food on the table. But how much of a role does money play in how you perform at work?
Someone close to me recently got quite a nice yearly bonus for doing work that "exceeds expectations". He was quite pleased about it and appreciated the recognition, but when I asked him if getting this yearly bonus changes how he does his work, he said "not at all". He is just conscientious and tries his very best to attain the best outcomes for both his clients and the company he works for, and when he does, he feels good about it. He says as long as he gets paid well and fairly, not necessarily contingent on meeting very specific targets, he'll do the best work he can do.
This testimonial fits quite well with results my colleagues from Norway and I got when looking at what happened after the introduction of a bonus system in an Norwegian insurance company. In this study, we surveyed over 600 sales employees over a two-year period to see how the introduction of quarterly and yearly bonuses based on selling insurance (we're talking of an average of $20K/year in bonuses with no decrease in base pay!) changed their motivation, their work efforts, and their desire to continue to work in the company. We found some surprising things.
First, employees did not feel that they had a lot of influence over their sales performance, so did not feel they could influence how much of a bonus they would get. Selling insurance is not just a matter of effort and skill, but also a matter of being in the right place in the right time. Second, the bigger the bonus, the more employees became extrinsically (money) motivated, while meaning and enjoyment for the work decreased. They did report putting a bit more effort because of the bonus, but not a whole lot more. However, the bigger the bonus, the more they wanted to leave!
Did they want to leave because they now thought they were a "hot item" and could get better jobs? Or was it the decrease in meaning and enjoyment that drove them out? Or the stress it created because of they didn't feel in control of it? We don't have information about whether they thought they could get something better elsewhere or if they felt more stressed. We do know that the decrease in meaning had an influence on them wanting to leave.  What's more, the company reported increases in unwanted behaviors, such as stealing clients from colleagues and keeping customers warm to boost quarterly bonuses. The company had to introduce monitoring and policies it didn't need before. And the icing on the cake is that the company did not experience an overall increase in sales. Those who sold more prior to the plan sold the same after, but now they were getting a bonus for it.
One thing for sure, we saw employee motivation shifting from being meaning and enjoyment based to being money based. And we know motivation based on meaning and enjoyment are related to better performance and well-being at work. So before overhauling a compensation system, it's very important to think about how it will affect the quality of employee motivation.
(Marylène Gagné, Ph.D., is Professor at the Future of Work Institute at Curtin University in Perth, Australia. This post was co-authored with Courtenay McGill).

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

China funded projects: Delay would create problems


A JOINT working group has been formed to probe the slow progress of the 27 projects involving around $20 billion that China had agreed to provide during President Xi Jinping's Dhaka visit in October 2016. China has so far disbursed only $981.36 million -- less than 5 percent of the ...

Football »

Infantino reacts to Blatter criticism over Africa cleanup


AP, Cairo :FIFA president Gianni Infantino hit back at Sepp Blatter's criticism of the world soccer body's cleanup operation in Africa as a modern-day form of "colonialism."Infantino response on Thursday was: "I have to laugh about it."Blatter, the former head of FIFA who is serving a six-year ban from soccer, ...

City »

A vital portion of highway in Uttara near Armed Police Office is in dilapidated condition where big potholes and cracks following incessant rains for the last few days and works relating to metro-rail project, other development works. This photo was taken on Thursday.


International »

US against any country purchasing Russia's S-400 defence system: Pentagon


PTI, Washington :The US is keen to make its defence partnership with India stronger, the Pentagon has said, but made it clear that it is against any country purchasing military equipment, including the S-400 missile defence system from Russia, that is designed to counter America's sophisticated fifth-generation aircraft.The remarks by ...

International »

Sea-Watch captain Rackete faces Italian prosecutor over migrant rescue


AFP, Agrigento :German captain Carola Rackete, who sparked international headlines by forcibly docking in an Italian port with rescued migrants, faces questioning by an Italian prosecutor on Thursday over allegedly aiding illegal immigration.The captain of the Sea-Watch 3 is expected to be questioned in the southern Sicilian town of Agrigento ...

Entertainment »

Poppy supports Bobita’s remark


Entertainment Report :Nick name of internationally acclaimed film actress Bobita is Poppy. Due to acting in the big screen Bobita had to sacrifice her name Poppy. On the other hand, after starting acting in movies Poppy could keep her original name. Poppy sometimes feels pleasure when she recalls the original ...

Editorial »

Ensure hassle-free higher education for them


THE results of this year's Higher Secondary Certificate and equivalent examinations under country's 10 education boards were announced yesterday where the combined pass rate rose by 7. 29 percent - that means it's now 73.93 per cent from last year's 66.64 per cent. The number of GPA-5 achievers in the ...

City »

Students of the city`s Motijheel Ideal School and College exulting over the brilliant results of the HSC examination. The snap was taken from the premises of the institution on Wednesday.


.

International »

China gifts military warship to Sri Lanka in sign of deepening cooperation


PTI, Beijing : China has gifted a warship to Sri Lanka, in the latest sign of its deepening military cooperation with the strategically located island nation in the Indian Ocean. Also, China's rolling-stock manufacturer has announced that it would shortly deliver nine "new type" of diesel trains to Sri Lanka.The China-gifted ...

Entertainment »

Peya Bipasha`s Eid telefilm Opekkha


Sheikh Arif Bulbon :Gleaming model and actress Peya Bipasha has recently acted in an Eid telefilm titled Opekkha under the direction of Maksudur Rahman Bishal. This was Peya’s first work for the upcoming Eid. In the telefilm, Peya Bipasha will be seen against Emon on the screen. Promising TV actress ...

Editorial »

Accidents at level crossings


A newly-married couple and eight others of the bridal party were killed when a Dhaka-bound train rammed their microbus at an unmanned level crossing in Sirajganj's Ullapara upazila on Monday evening. The fatal accident has spoiled unmet dream of the couple. It's due to utter negligence of the Railway Authorities ...

Football »

Argentine sport court member advices Messi to apologize


AP, Buenos Aires :Lionel Messi should apologize for his harsh comments at the Copa America in order to avoid a sanction, an Argentine member of sport's highest court said on Monday.Following defeats in the last two finals, Messi had another frustrating end to the tournament when he was sent off ...

International »

Government restrictions on religion increasing worldwide


AP, New York  :Government restrictions on religion have increased markedly in many places around the world, not only in authoritarian countries, but also in many of Europe's democracies, according to a report surveying 198 countries that was released Monday.The report released by the Pew Research Center, covering developments through 2017, ...

International »

Erdogan hails S-400 deal as Turkey marks 2016 coup bid


AFP, Istanbul :President Recep Tayyip Erdogan on Monday hailed the controversial delivery of a Russian missile defence system despite the threat of US sanctions, as Turkey marked the third anniversary of a bloody coup attempt.Just days before the anniversary, the first batch of the Russian S-400 defence system was delivered ...

Business & Economy »

HMD Global launches two Nokia Smart Phones


Economic Reporter :HMD Global, the home of Nokia phones, launched Nokia 3.2 and Nokia 2.2 in Bangladesh.The Launching ceremony was held at a city hotel on Tuesday.  Farhan Rashid, Head of Business of HMD Global Bangladesh, Raquibul Kabir, Managing Director of Union Group, Syed MostahidalHoq, Managing Director of Daraz Bangladesh ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news