Tuesday, May 04, 2004

Rewards, Incentives, and Unintended Consequences

Sometimes, in an effort to motivate our staffs, we set the bar a little too high or in the wrong place entirely. And as a result, it has the exact opposite effect as intended.

Consider the sales manager who offers that fabulous all-expense-paid trip to anywhere to whoever reaches a certain sales figure. Great idea, except if that sales goal is unrealistically high. Then the so-called incentive becomes a DE-motivator.

Or how about the manager who schedules an after-hours celebration party for his/her project team? Sometimes that's a real nice way to say thank-you, but if your team has been working hellacious hours, maybe requesting that they spend even more time away from their families to party with people they've already spent way-too-much time with isn't all that much of a thank-you after all. Maybe a day-off, or even a late-arrival would be more appreciated.

It's great to be able to offer incentives and rewards, but before you do, think through the Unintended Consequences they could have. Don't be wrong for the right reasons.

Remember: it isn't just that you're providing these opportunities that matters; it's how well they are received-as-intended - that's what really counts.