What are the long-term effects of bonuses on employee performance?
Bonuses can enhance motivation and performance in the short term, but their long-term effects can vary.
Can bonuses lead to a decrease in intrinsic motivation?
Yes, relying too much on bonuses can undermine intrinsic motivation, as employees may focus on rewards rather than the work itself.
How can companies structure bonuses to avoid negative effects?
Companies can structure bonuses to be tied to team goals and long-term performance metrics, promoting collaboration.
Are there any studies on this topic?
Yes, several studies indicate that while bonuses can boost short-term performance, they may not sustain long-term engagement.
What alternatives to bonuses can companies consider?
Alternatives include recognition programs, professional development opportunities, and fostering a positive work culture.
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