“So, what am I to do?” Max challenged. “I have to give them a bonus. The work is routine, in some cases, monotonous. I mean, I know, at my level, it is easier to get satisfaction from my work, not total satisfaction, but there are times when I actually enjoy work. I get a sense of accomplishment. But, my team? I can only imagine they come to work for the money. If it weren’t for the money, they would find something else to do. The only way I can get their attention is with a results-based financial incentive.”
“Tell me more,” I prompted.
“Well, it is pretty apparent. All you have to do is watch what happens. I give my team a bonus for hitting a certain production number and it is amazing how accurately they hit that number.”
“So, tell me, their base salary? What is that for?” I wanted to know.
“Base salary is just so they will show up. If I want them to hit a goal, I have to sweeten the pot. Give them a little kicker. It is just the way it is,” Max insisted.
“I want to understand. As the manager, you create the system, the environment in which people work. The culture you have created is that, for their base salary, your team just has to show up, they don’t really have to do anything special. They can survive on your team by doing less than their best. And that if you, as the manager, truly need anything specific done, a target, a goal, the only way you can motivate them is with a spiff?”
Max nodded. “That’s pretty much it.”
“So, you hold back a little money, and if, and only if, they meet the goal, they get a bonus?”
“Well, yes, that’s the way it’s supposed to work. But, of course, now everyone expects the bonus, kind of like they are entitled to it. So, sometimes, I have to strongly remind them that the bonus is at risk. That’s what we talk about at the team meeting. If we don’t hit the goal, the team doesn’t get its bonus.”
“So, the bonus doesn’t truly drive behavior. You have to remind them that the bonus drives behavior?”