Research has found the majority of workers in the trade sector are not motivated by lump sums.
After questioning 1,000 UK workers about what motivates them in the workplace, One4all Rewards’ Push the Button report found that handing out wads of cash is not an effective way of increasing staff efforts.
Three-quarters of those surveyed said they would not work significantly harder in exchange for a bonus equivalent to 10% of their annual salary.
Even incentives equivalent to 25% of annual salaries would not motivate over half (55%) of traders.
Similarly, a 10% pay rise would only result in one worker in four (25%) working harder.
These findings suggest that incentivising staff to work harder is about much more than bumping up their bank balances.
For those businesses looking at alternatives to financial incentives, the report findings identified several effective options.
One in four (25%) employees said they were motivated to work harder by regular rewards, such as weekly or monthly treats.
In addition, a bonus linked directly to an individual’s work performance would result in an increase in output for more than one in three (35%).
One4all Rewards managing director Declan Byrne 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 – and it seems this is especially true in the trade sector. As it can be very expensive for businesses, this is an important learning for many employers to acknowledge.”
As a provider of reward schemes for small and medium-sized businesses, One4all Rewards recommended that employers clearly define their objectives for an incentive and benefit scheme.
Mr Byrne said it was important to define the goals and the likely results from the outset.