Companies view bonuses as an essential way of making their employees work harder. Dangle a nice big pay packet in front of them, and they'll surely put in more effort throughout the year.
But new research by One4all Rewards shows that bonuses actually provide little incentive to the majority of UK workers, with 78 per cent saying they would not work harder for a prize worth 10 per cent of annual salary.
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Raising the amount of bonus on offer increases overall appetite to work harder - but not by much.
Just half of respondents said they would not be motivated to work harder for a bonus amounting to 25 per cent of their salary. A 10 per cent pay rise, meanwhile, would only result in 22 per cent of workers working harder.
The findings were based on a study of 1,000 UK workers, asking what motivates them in the workplace. Researchers claim it highlights that monetary rewards are often not the best tactic to improve work ethic.
Declan Byrne, UK managing director at One4all Rewards, said:
From this research, it’s clear to see that while bonus culture is impactful, it isn’t always an effective driver of increased output or motivation for many employees. As it can be very expensive for businesses, this is an important learning for many UK employers to acknowledge.