Page 45 - Build a Culture of Employee Engagement with the Principles

16 Carrots and Sticks Don’t Work

problems down the road. It’s similar to retailers who advertise
“zero down and no payments for six months.” It sounds good
now, but in the end it’s going to cost you a whole lot more.
Although the evidence against the use of extrinsic rewards
to motivate employees has been around for many years, busi-
ness leaders and human resources professionals simply seem
unwilling to accept it, perhaps because they don’t know what
else to do and the approach does seem sensible. My intention in
this chapter is to put together such a comprehensive and com-
pelling list of reasons against the use of traditional reward and
recognition programs that their use can no longer be justified.

Tube Socks for Everyone

Several years ago I was hired by a large manufacturing company
to help with its employee recognition and rewards program. In
general, the company leaders wanted to motivate their employ-
ees and, specifically, to increase employees’ compliance with
safety requirements such as wearing hard hats, using eye and
ear protection, and wearing seatbelts when operating a forklift.
During my first visit I met with Tim, a senior member of the
human resources department and the individual responsible for
this initiative. While giving me a tour of the facility, he pointed
out numerous employees violating safety procedures. When we
got back to his office he began telling me how the company had
tried “everything” to get employees to work safely. Everything
included providing extensive safety training, holding team
meetings, hanging signs, making announcements over the loud-
speaker, and offering various incentives for months with no lost-
time accidents.
The company had also tried a number of different rewards.
For example, at the end of the first accident-free month everyone