We are getting to that time of the year when companies are thinking about year-end bonuses for their employees. Companies use these bonuses to reward their employees‘ performance during the past year. But there is also the unspoken expectation that these bonuses will be a factor in motivating employees‘ performance next year as well.
If you are the individual who receives a large bonus, you likely want to get it next year too. On the other hand, if you are the employee who receives a miserly bonus and it reflects how the company assessed your performance, then you might consider improving next year.
The question I have is: Do year-end bonuses have any far-reaching effects on motivating employee performance? I say, categorically, no! So many factors affect employee performance, and compensation, bonuses, or other financial perks are just one. If you didn’t read it already, go back to my blog post on Employee Motivation Myths which addressed the myriad myths about employee motivation.
To me, people are inherently motivated or they aren’t. I do believe environment can have a negative impact on someone who is, by nature, motivated. But I don’t believe you can change performance through a series of perks or withholding those perks. I am a huge fan of bonuses, though they don’t necessarily have to be at year’s end.
Bonuses are a way of saying thank you for a job well done. Employees who have performed well will appreciate it, and next year they will perform well because that’s who they are. The personal satisfaction they receive from a job well done is enough. The bonus is simply icing on the cake. For those employees whose performance is less than stellar, I sincerely doubt whether a year-end bonus of any size will be a factor in motivating employee performance in the upcoming year.Immobilienmakler Heidelberg Makler Heidelberg