HR Learner in Development

The Dark Side of Rewards

Posted on: August 31, 2010

In putting a Rewards and Recognition system in place, pay special attention to how the system is playing out. Some of what you are doing may be working against your goal.

I have been reading a bit about Talent Management in a book called “Talent Management: Cases and Commentary,” edited by Eddie Blass and published by Palgrave Macmillan. I came across a passage that struck me as being both counter-intuitive and valuable.

I come from a department that has spent a great deal of time rethinking rewards and recognition, finding it something to strive for as a Division, following our strategic objectives.  However, rewarding talent can also have a dark side.  If the rewards structure is built in a way that pits people against eachother, negative cultures can emerge as follows:

1. Mercenary – Money comes before, and often at the expense of, teamwork

2. Networked – This culture is highly politicized and people know how to manipulate and backstab in order to compete internally

3. Performance – This culture is demanding, with no break for the employees who must always hit the right numbers for the bottom line

4. Communal – Everybody wants internal approval and no body wants to rock the boat making th decision process slow and innovation next to non-existant. 

5. Communication – There is little feedback and things may not be done as said.

The goal, therefore, is to find a framework that provides a proper amount of encouragement and support for people to work together towards the greater good of the group.  Above all, if you are trying to implement a successful rewards or recognition program, always remember to make the process transparent and fair so that people can understand the decisions, and perhaps strive to be in the favored group down the road.

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