Vwegba Blogging World

Employee compensation is often one of the biggest expenses that small businesses face, but motivated, productive employees can be the difference between success and failure. Some employers choose to offer extra financial rewards to employees, such as bonuses and commissions, to motivate workers to be more productive. Despite the potential to increase productivity, performance-based incentives can have negative effects on businesses. Inconsistency One drawback of motivating employees with financial rewards like bonuses and commissions is that such rewards are often inconsistent. For example, if a small business has a profitable year, it might be able to reward all of its workers with large annual bonuses. If the company performs poorly the next year, it might not have enough money to pay bonuses, even if employees worked just as hard. If employees receive smaller rewards than they expect or than they had received in the past, it may hurt morale. Teamwork Teamwork is vital to ...