The danger of incentivising

The danger of incentivising

Offering a financial incentive is not always the best tactic, as outlined by this post on LinkedIn by Kenneth Sharp.

If you are offering to pay someone then this may conflict with their moral obligation to do a particular task. The introduction of a financial reward or penalty has the potential to demoralise a decision. Instead of weighing up the moral effects of a decision, the person can simply decide whether or not the fine is worth paying.

What this shows is that incentives and penalties are never a substitute for a moral compass and any attempt to sway the decision through financial means will just backfire – something you might want to bear in mind when managing people in your small business.

via LinkedIn

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