Blog 8-The Dark Side of Reward Systems: Preventing Unintended Consequences and Toxic Competition
Recognition programs are designed to enhance employee performance and improve motivation. Companies invest millions in their recognition programs with high expectations . However, these systems usually deliver negative results. Even well-motivated incentive programs may work in reverse when the designers do not foresee human actions. These recognition programs may also create unhealthy competition, support unethical practices, and, ironically enough, lower intrinsic motivation that they are intended to boost ( Kuvaas et al., 2017). Knowledge of these dark sides helps organizations to create superior systems. This paper identifies the pitfalls and provides mitigation strategies. Gaming the System Employees can always find innovative methods of suppressing reward measures. When organiz...