THE INCENTIVE ILLUSION
I can’t remember ever playing for a thirteenth cheque, a car, or a bonus. It was great when we received a bonus, but it never really motivated me to play better. I think everyone is different, and different people are motivated by different things, but I am relatively certain that monetary incentives don’t help with long-term resilience in senior staff.
The main reason I gave everything I had was simple: I wanted to win. Nothing more, nothing less.
THE OVERJUSTIFICATION EFFECT IN BUSINESS
In business, I see the same principle at work. Psychologists refer to this as the overjustification effect. Bonuses shift attention from “This work matters” to “What do I get out of it?” This weakens intrinsic motivation and turns drive into a transaction.
Monetary incentives can also narrow focus and reduce creativity. Leaders become fixated on meeting metrics to earn rewards, and in business, you get exactly what you measure. Short-term targets are often gamed while long-term health is neglected.
WHEN EXTERNAL FACTORS DISRUPT INTERNAL TARGETS
Another common problem is that people feel bonuses are unfair and uncontrollable. Trump is a great example of how things can change and how ordinary people on the street suffer because he slapped 15% import duties on a fruit that comes all the way from South Africa.
Furthermore, people who have a business in SA say that big individual payouts can turn colleagues into competitors. Silos get reinforced when individuals stop talking and start competing. If they are in the wrong surroundings, this will definitely lead to a lack of collaboration. Why would you help other departments when it could affect your own bonus?
CULTIVATING A SHARED MISSION OVER INDIVIDUAL PERKS
Real internal drive comes from a shared mission and not from a “Me” vs “We” situation. With all the trophies that we won, it was never an issue because we had a shared mission and we all wanted it.
Because people are different, it is a case of “different strokes for different folks.” Some people love money, some people love affirmation, and other people just love having a job—never mind a bonus. I have no doubt that people who are driven by money will always want the bonus and work incredibly hard to achieve the targets that are set for them.
However, most execs with real internal drive want ownership, trust, and impact—not just a fat paycheck. When these execs are in charge, there is a lot more harmony and staff members all knuckle down to make sure that there are not only profits, but lasting differences in the communities we serve.
JOIN THE CONVERSATION
What are your thoughts on massive monetary incentives and what they do to staff morale, teamwork, and mental health?
GET IN TOUCH
If you would like to get in touch with me about my key note presentation, Debunking Motivation, please send an email to corne@cornekrige.com. Visit my website to review my speaker sheet for more info. I also share my story on my social media pages on Facebook and LinkedIn.