When we are talking about bonuses, we immediately think of money. In a lot of companies, the bonus is used as a motivation tool. And, actually, we know for more than 40 years that the carrot (= bonus) and the stick method is not working as motivation, and, even more important, not in the benefit of the company. Actually, it works against when the bonus is not related to a good key performance indicator. We also know more than 40 years that motivation is not coming from bonuses.
Often, we don’t realize how important our work is in our life. People in Romania make long working hours. Ten hours a day is no exception. In these cases, people spend 30% of their time on work, an equal 30% for family and friends and 40% is spend on sleeping and travelling. And this all includes the weekend. So, I think it is very relevant to think about those life questions.
Bonuses, in this article, I mean bonus in money, is meant to increase the motivation. And an increased motivation increases the performance. But is that really the case? When people receive a bonus, two variables are important: When you receive it and how much you receive. And these variables are also connected with each other. Let’s have a closer look to these two variables.
During one of my workshops, I was drinking a beer in the evening with Dragoș, one of the managers. It was clear for me that Dragos liked his job. He talked enthusiastic about the company and the way they worked together. His face changed when he started talking about his team. He was leading a team of 12 people, nice people and hard-working, he told me, only Liviu was a drama.