Many of us have probably been on holiday in recent weeks. Nice to a warm country, a hotel with a swimming pool with those nice sun beds. Who secretly claimed the pool beds early in the morning by putting a towel on them? Or perhaps you were greatly annoyed by the people who did this? Did you think to yourself afterwards: maybe we should do it tomorrow morning after all?
This phenomenon is also known as 'loss of aversion' in behaviour change. This theory is about the pain of losing something being greater than the joy of gaining something. After all, it feels like you are entitled to that cot.
We also see this avoidance of loss with bonuses. A bonus motivates for the wrong reason. Extrinsic motivation. Namely, we are going to do everything possible not to lose that bonus. Even if we haven't even got it yet. The 'doing everything possible' is often not working together, coming up with creative solutions, innovating etc.
A few years ago, I worked in a healthcare organisation. I was just working there and was tasked with guiding the organisation in achieving accreditation. After working on this for more than a year, we achieved accreditation. I was proud to have succeeded. As a surprise, I received an extra reward.
After getting the accreditation, the whole thing started all over again. A few years later, we had to get it again, of course. Again, I worked hard for it. Again we achieved the accreditation. Only this time, during that hard work, I thought about that bonus. In my mind, I had already spent it on something. Only...this time I didn't get it. And yes, this felt like a loss. Like I hadn't done well. My motivation sank tremendously fast after that. Guiding another accreditation? I'd rather go do something else! The bonus imperceptibly turned something that started from intrinsic motivation into extrinsic motivation. And that ultimately proved insufficient to keep my work fun.
So think again when you go to lay down your towel next holiday. Why am I actually doing this? The same goes for the bonus. What am I actually doing to my employees?
Arlène Speelman
Consultant at Bureau Baarda