Should employers rely on bonuses to incentivise staff?
We all know that bonus and other performance related incentives are one way to incentivise staff (alongside other matters such as career progression and internal recognition for hard work). However, this article highlights that for such incentives to have any real impact they do need to be capable of being achieved otherwise the value of such incentives are lost.
The flipside to this is that levels of pay should still be carefully considered (and not based entirely on individual performance) to take into account events entirely or partially outside of an individual's control.
Therefore concentrating solely on pay is unlikely to be enough and instead employers should also consider other methods of incentivising and retaining staff such as creating a good working environment, the culture within the workplace and non-financial recognition of hard work.
Money is best staff motivator but half of companies fail to offer bonuses”