Incentives and Rewards in Employee Management

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Incentives and rewards are the most common tools in a manager’s arsenal that could be used to motivate the employees. Usually, the motivation is encouraged through means of monetary gain or promises of advancement in the company hierarchy via promotions. However, these methods are not a panacea for all problems involving employee commitment. They are often overused by inexperienced managers. This paper will address the issue of incentives and rewards and explain how and when they should be used.

The incentives of monetary gain or possible promotions are excellent ways of getting a boost of short-term motivation. When a project is approaching its deadline, a promise of extra payment could motivate the employees to stay overtime and put more effort into their work. Thus, their performance would allow the company to complete the project on time. However, this puts the budget under a strain, which grows proportionately to the number of the employees involved in the project. This method should not be overused – frequent bonuses would diminish the zeal of the employees, with time. This makes monetary incentives a poor long-term motivator (Reilly 1).

Promotions, on the other hand, are a better long-term motivator. Promising a promotion in return for hard work over a long period of time would ensure productivity among the employees looking to rise in rank. However, while this method is useful for motivating certain employees, it is not equally useful for everybody. After all, the organization would not be able to promote every single employee, as there would be no one left to work. In addition, some employees are not actively looking to rank up, and some simply do not have the qualities to fit the position.

Employees’ productivity relies on many factors. Not all of them are directly tied to the amount of money they receive as compensation for their efforts. One of the greatest motivators for productive labor is genuine love for their job. If an employee hates his work or does not have the heart for it, any kind of motivation will have only a short-term effect. Love for one’s job relies on two factors:

Enjoying the working process.
Enjoying the company of other employees during work (“The Three Component Model of Commitment” par. 5).

While the actual working process is largely outside of a manager’s control, creating a positive atmosphere and a sense of community is possible. During times of crisis, when wages are cut and business is low, the sense of community is the only thing that will keep the company from falling apart. In addition, if the employees realize the importance of the company’s mission and understand that the welfare of the company reflects on their own, they will be much more willing to work productively, with utmost efficiency and zeal. To foster these kinds of connections is a lengthy process, but it is worthwhile. No company ever lasted long using financial rewards as its primary and only motivator.

Incentives and rewards are powerful tools at a manager’s disposal. However, they are not the most powerful. As it was already mentioned in this paper, there are plenty of other motivators one can use to foster productivity and engagement within the company. The best way to ensure long-term employee commitment is not through periodic monetary rewards, but through building a solid and healthy working community.