What We Get Wrong About Incentive Pay

Decades of psychology research tell us what motivates people to do their best work. And the answer is not command and control structures which include incentivizing and monitoring people to make sure they perform at their highest levels.

We often send mixed messages when we provide incentives to meet KPI’s and other goals. Incentives can tell our people we assume they are not intrinsically motivated, while at the same time we signal we want them to be autonomous and make sound decisions within their realm of decision-making authority.

Command and control feels like it works when we are looking for short term gain. Are managers and leaders adding control when they should be giving people more space? As a leader, do you really trust people to do the job you hired them for? Do you behave in a way that encourages them to make sound decisions and do their best work?

We undermine ourselves if we think we are leading to encourage autonomy but in actuality are utilizing command and control practices.

Here is a key question: are we working toward a purpose that all buy into? What are the goals we can set together as an organization to achieve that purpose? Involve people in meaningful ways in what we want to achieve and give them as much freedom as possible to do the job you hired them to do.

If people aren’t performing well, talk with them and figure out what is going on. Do they have the training and tools to do their best work? Have they hit a speed bump due to some personal situation in their lives? Determine as best you can why someone who was a strong performer all of a sudden is not and help them find their way again.

Accountability still matters in the midst of giving people latitude and autonomy in how they do their work. Try to move from compliance to ownership and help people feel a connection to the purpose of the organization.

The bottom line is this: start with the assumption people want to do meaningful work and that they want to contribute. Hire the right people and then trust your employees!

#incentiveplans #employeeautonomy #trustyouremployees