In several companies, it is common practice for the director to receive a large bonus when things go well. The aim is of course to motivate this director to give his best. But research shows that financial rewards do not have the desired effect. In fact, they have the exact opposite effect on us. We become less motivated, less creative and simply perform worse.
"That sounds strange", you might think, because "it's the way we've always done it, and who wouldn't be happy to get more money?" However, you are far from the only one who has thought so, because the claim has been tested again and again and again.
One of the experiments is the so-called "candle problem", which Princeton Professor Sam Glucksberg carried out in 1962. The task is to fasten a candle to a wall so that it does not drip onto the table. To solve the task, two groups of test subjects were given, in addition to the light, a box of drawing pins and a pack of matches. The solution is to use the box to hold the light. He told half of the subjects that time was taken to set a standard time. The other group was told that if they were among the 25% fastest, they would get $5. The fastest would get $20.
So what happened? The group that was promised a reward for the fastest time actually took longer to complete the test. In fact, it took them an average of three and a half minutes longer than the group that wasn't promised a reward.
Why is this happening? Why did the promise of money make them complete the task more slowly?
It's really quite simple. Rewards and the threat of punishment act as blinders. Many solutions to complex problems lie at the edge of our field of vision. When we are promised a reward for solving a problem, we are only able to see the solution that is right in front of us.
Bonuses, raises and other external rewards and punishments are what Dan Pink, the author of "Drive: The Surprising Truth About What Motivates Us", calls "if-then" rewards. So: "If you do this, you get this."
The reason this "if-then" reward is still used, even though research has long since proven it doesn't work, is because it worked well in the past. Like so many other management and business phenomena, the reward and punishment method was created during the Industrial Revolution. Back then, however, it was much easier to motivate people, because their work tasks typically consisted of pressing a button or pulling a handle. And with simple and well-defined tasks, it works well with "if-then" rewards. Today, when the vast majority of work tasks require creativity, critical thinking and problem solving, the "if-then" rewards are directly demotivating and impair our performance. Although the Industrial Revolution took place a long time ago, some of the methods from that time still stick.
So unless your employees are still sitting and pushing buttons and pulling handles, you would do well to create a company where external rewards and punishments; various bonuses and threats of dismissal are replaced by an environment that supports a completely different form of motivation: intrinsic motivation.
The idea that there are two types of motivation comes from the Self-determination Theory. One type is called external motivation, which is created by external rewards: bonuses, salary, etc. The other type is called internal or inner motivation and comes "from within" yourself. When you do something because it is fun, interesting or because it supports one of your personal goals, you are intrinsically motivated. Like Glucksberg, Richard M. Ryan and Edward L. Deci, who created the self-determination theory, believe that internal motivation is the way forward to motivated and productive employees.
They have identified three types of needs that must be present to enable intrinsic motivation:
When you want to motivate others, you must therefore stimulate these needs. And then forget about controlling your employees and about "getting them to do what you want".
“Threats, rewards, demanding language and criticism create situations that make the receiver feel incompetent and subject to someone else's will. But what we are actually motivated by as humans is recognition and the feeling of having a choice. Therefore, it is about offering people a choice and being open, interested and appreciative.” Explains Edward L. Deci in a interview.
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