Published: FEBRUARY 25, 2011
Throw away your carrots and buy a big stick. That seems to be what is suggested by the latest research from the Nottingham School of Economics. An experiment conducted by them suggests that paying bonuses to employees doesn’t encourage greater effort after all – and surprisingly leads to increased shirking! What’s more, they found that when penalties were brought in for lazy workers, employee efficiency improved noticeably.
What could be more welcome to employers in these tough economic times – cutting your costs by scrapping bonuses and shouting more! It’s certainly a thought, but being a big softy, I think I’ll hang on to a few carrots after all.