The short answer: I think not! Indeed, why use monthly over and above incentives at all?

Do you assume incentives will result in a more motivated workforce? Do you think that rewarding employees for merely doing their jobs will make them better at it? If so, think again. Social science shows that it doesn’t.

In my experience, incentivizing staff usually backfires because:

  • Money isn’t always the ultimate motivator.
    Rewards like money, time off, and plaques might temporarily change behaviour, but it’ll soon slide back just like a failed diet.

    It has been shown that while the carrot-and-the-stick approach might motivate people in the short term, it doesn’t get them to work well over time. Just like someone sprinting at the start of a marathon, incentives might produce great performance for a while, but they certainly won’t get you anywhere in the long run.

  • Incentives do not alter the attitudes that underlie the behaviour.
    Incentives do not create an enduring commitment to corporate values or goals. Rather, they merely — and temporarily — change what we do. Although factors like salary, status, job security, work conditions and management styles are important, more of these don’t necessarily motivate your staff more.

Motivating people is much less about external prodding or incentives and much more about what’s inside of each person and inside the work they do.

As managers, we should rather focus on the things that motivate our staff, such as:

  1. personal growth
  2. recognition,
  3. responsibility, and
  4. challenging work

The most motivated people are those who feel a connection with their work.

To help shape the sense of progress that leads to motivated, meaningful work provide your staff with clear work goals and sufficient resources to accomplish them; and support your staff’s inner work lives by showing them respect and providing emotional support.

Should the company or division succeed, there should be recognition such as an annual bonus to recognize the ongoing commitment to performance and company culture. This ensures sustained work ethic, quality delivery to clients, consistent achievement of targets and retention.