The Incentive Trap – Are You Caught Up In It?

Here’s something that may challenge your current thinking about incentives: Not all incentive programs motivate people towards better and higher levels of performance.  In fact, a good many of these programs have just the opposite effect. They can also serve as a source of motivation for the wrong people or a source of entitlement. Basically, there are three types of motivation:  Fear (self-imposed or direct threats); Extrinsic (outside programs such as bonuses, special perks, etc.); and Intrinsic (internal drive for accomplishment).  While fear and extrinsic motivation may have some immediate impact on performance levels their impact is generally short-lived.  To read the end of this blog, click here.