This may happen, for instance, if an employee receives a monetary reward when he was reaching for psychological proximity instead. While casual incentives can be very appreciated rewards, they can also be used to keep a social distance from the persons to whom they are given. Sometimes employees are reaching for a positive stroke: an acknowledgment that their superior performance has been noticed. Unfortunately, chances are that workers will be rewarded for their popularity. This type of recognition could even be given in public. Recognition coming from fellow employees is unlikely to cause resentment and is one of the most sincere forms of praise. The nominating procedure should be kept simple. One way of overcoming both envy and favoritism challenges may be by having workers nominate others for these casual awards. Perceptions among workers that rewards are given in a capricious or arbitrary manner, however, may still remain. An example of the latter is when coworkers hear a direct or implied comparison between the rewarded employee and themselves.Įven though workers are likely to tell others about their rewards anyway, the force of the comparison is reduced when you give casual incentives privately. While there are times when praising workers in public is appropriate, at other times it may do more harm than good. Three possible drawbacks to the casual incentive approach may include (1) envy among employees, (2) feelings among workers that the supervisor may be acting out of favoritism, and (3) the use of rewards to maintain social distance. People thrive on positive feedback.ĭrawbacks.

Casual incentives communicate to employees that you have noticed their efforts. You may want to entitle workers to choose from a menu of several rewards.Īccompanied by a specific commendation, 'This is for reducing our total harvest-time machinery break downs,' the reward is more effective than 'thanks for all you do.' To be of use, these casual incentives must be given at unexpected intervals.Ī bonus given routinely soon becomes part of the expected compensation package. Casual rewards include a pat on the back, a sincere thank-you, a $50 bill, a dinner for two at a local restaurant, or a pair of tickets to the rodeo (workers may have excellent suggestions along these lines). The simplicity inherent in the casual incentive approach attracts many farmers who would not consider a structured incentive. In a casual approach, workers never know when a reward will be given. In structured incentives, workers understand ahead of time the precise relationship between performance and the incentive reward. Although each rewards specific employee behaviors, they differ substantially. In this chapter we discuss casual and structured incentives. While incentives are not the answer to all personnel challenges, they can do much to increase worker performance.

Incentive pay, also known as 'pay for performance' is generally given for specific performance results rather than simply for time worked. I use incentive pay for other jobs as well, such as potting plants-I wish I could use it for everything!' 2 'My labor costs went down 50 percent for the same amount of production. Incentive Pay (Pay for Performance) | UNIVERSITY OF CALIFORNIA

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