You are here

Why financial incentives fall short in driving employees

Beware the tenuous link between monetary inducements, motivation, and performance.

A job seeker at a career fair in San Francisco. A Gallup poll showed only 31.5% of US workers were "engaged" in their jobs in 2014, 51% were "not engaged", and 17.5% were "actively disengaged".

IN the old Westerns, the standard option for resolving disputes was to reach for your gun in a duel. Reaching for financial incentives to solve most problems is the corporate equivalent - another fatal attraction.

There is an unhealthy tendency among leaders to look for a silver bullet,...