A king rejoices in wise servants but is angry with those who disgrace him. Proverbs 14:35
As Maquis de Sade taught us long ago, penalties are far more motivating than rewards. Economists argue that we are more inclined to avoid actual loss than to strive for conditional benefits.
As a business owner, you can boost your employees’ productivity by setting consequences. Turns out your employees will work harder to avoid a loss than to seek a gain.
Giving a bonus under reward-and-punishment system is an effective way to encourage employees to work enthusiastically and professionally, which is essential in an increasingly tough economy.
Employees who perform exceptionally well, such as someone from the marketing division who achieves a more than the expected target, should be given higher proportion than employees who make an average achievement.