Bonus

As early as November, private and government employees are very much anticipative of the annual bonus. It is probably the happiest moment for the working employees that after months of working hard, there is something they look forward to receive, making their yuletide celebration so memorable as this means increased purchasing power—more food on the table, new acquisitions, holding and attending parties. Yes, it supports what we want beyond an ordinary day.

A bonus, something in addition to what is expected or strictly due, is generally a way to recognize what the employees have contributed to the company. And those who have really exerted much effort, all the hard work has paid off. And so it’s the company’s way of sustaining the momentum of productivity, or even surpassing it.

Most managers would concur that motivated, gainful employees are pivotal for organizational success, paying little heed to organization size, industry, or corporate procedure. The question is how to rouse them. Offering employees performance-based motivator pay is one regular methodology, whether it is offered to people dependent on evaluations of their performance, or are offered as organization-wide impetuses.

There is a general accord that employees’ hard work and responsibility to business improvement ought to be recognized monetarily. These bonus schemes are believed to be an excellent method to make a culture of hard work all through an organization.  Not exclusively are bonus extra plans thought to spur and boost employees, they are additionally thought to build workers' relationship with an organization and adjust them to its operational goals and ethos.

Although it’s commonly thought that these bonus schemes are an effective way to ensure employees are achieving maximum performance, they are extremely hard to implement. Any financial-based incentive scheme needs to be designed carefully and tailored to align with an organization’s needs.

Curiously, however, a study uncovered that when monetary rewards are accessible to employees, they overstate their achievements, adulterate documents, and outrightly manipulate their supervisor's opinions so as to make a misleadingly positive impression of themselves for their very own financial gain.

When managers were not present and able to constantly monitor every single piece of work that their team did, employees took advantage of this. In fact, employees exaggerated their contribution, making out they had completed much more work than they had.

And when a manager was present, however, employees actively looked to complete more work, so the manager perceived them to be key contributors to the workload, even if they were not. Whether a manager was present or not, offering financial incentives to employees meant that they would try to manipulate their performance damaging the company culture within an organization, and create an unhealthy working environment for employees.

A similar report recommended a group pay framework where employees get a portion of the benefits created by the entire group so that, despite the fact that all workers in the group are paid similarly, regardless they have solid impetuses to try sincerely and support group performance. High competition, unfaithfulness between workers, deceitful conduct and control strategies are likewise more uncertain inside an equal pay system too.

A successful relationship between employer and employees is based around the fair generation and sharing of effort and value. And this includes remuneration.

It may not be all of us who are extremely happy with the extra amount we receive as this practice has been ingrained in the system and so it’s difficult to eradicate. Personally, I just hope that the money is well-spent and would translate to creation of a favorable working environment for all.