Irrational. Some days, does it seem like that’s the best word to describe the workplace? I tend to like Dan Ariely’s research on irrationality. Initial research showed, “In eight of the nine tasks, the promise of a bigger bonus actually significantly decreased people’s performance.”
Paul Hebert recently reviewed Ariely’s latest book, The Upside of Irrationality on his i2i blog. Paul highlighted this very interesting twist on the impact of cash bonuses:
Why was the study structured this way? Because cash bonuses become an expectation. People begin to factor it into their “earned income” budgets. They expect to receive those bonuses at the end of the year, and the threat that the bonus might not materialize is enough to trigger deviant behaviors.
I can’t say I’m surprised by the findings. And that’s why I so strongly advocate against “If/Then” rewards – if you do this, you’ll get that. We’re in the business of “After/That” recognition – a surprise you’re not expecting when you do a job well. A sincere, specific appreciation of those efforts, but never something that you can come to expect.
Irrational. We’re human. To some extent we’re all irrational. But our job as HR pros in the workplace is to ensure that we’re not actively feeding that irrationality to the detriment of our firm.
