Short-Term Incentives, Long-Term Success?

Do short-term incentives really work to motivate employees? Jennifer E. Wynter-Palmer of the University of Technology/Jamaica Institute of Management examined the debate and its implications in her article “Is the Use of Short-Term Incentives Good Organization Strategy?,” published in the Compensation & Benefits Review September/October 2012 issue:

CBR_42_1_72ppiRGB_150pixWThis article is based on research conducted on Jamaica’s hotel industry. The study sought to determine if there are any advantages to both employers and employees in use of short-term incentives in that industry. Using theories of motivation and the concepts governing incentive compensation to construct a theoretical framework, the article sought to make the link between short-term incentives, motivation and employee productivity. The debate by both academicians and human resource practitioners is about the right types as well as the right mix of workplace motivators. It is acknowledged that there are strong arguments on all sides. This article seeks to add to the academic debate by advancing that what is critical is that (a) the need for employee motivation should not be viewed as optional but must be fully appreciated, planned and implemented thoughtfully by employers; and (b) the motivational processes used will be influenced by the thinking of an organization’s leadership team as well as the culture of the organization. It is posited for this discussion that where organizations are on a quest to improve workforce productivity, their employees need to be motivated by a combination of intrinsic and extrinsic rewards. In turn, the right types and levels of motivation will lead to employees performing at the desired levels.

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This entry was posted in Compensation and Benefits and tagged , , , , , by Cynthia Nalevanko, Senior Editor, SAGE Publishing. Bookmark the permalink.

About Cynthia Nalevanko, Senior Editor, SAGE Publishing

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 1500 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, Washington DC, and Melburne, our publishing program includes more than 1000 journals and over 900 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

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