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Why does the unarchiver never work3/16/2024 ![]() ![]() ![]() Then consider more potent strategies-including long-term goal setting and training. So how can you build an exceptional work-force? Understand the real costs of pay-for-performance. It can’t create an enduring commitment to your company’s values or lasting, meaningful change. It may change people’s behavior in the short run, but it doesn’t alter the attitudes driving behavior. Whether it’s piecework pay, stock options, commissions, or Employee of the Month privileges, pay-for-performance gains you one thing: temporary compliance. At the executive level, studies reveal minimal or even negative correlations between pay and performance, as measured by corporate profitability and other criteria. Why? Studies show that people who expect to receive a reward for completing a task typically underperform compared to those who expect no reward-particularly if the task requires sophisticated thinking. corporations use incentive programs, trying to reward quality may be a fool’s errand. If you want to build a committed, collaborative, and creative workforce, you have to pay employees for excellence, right? Not necessarily. ![]()
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