Why “do not work” monetary incentive systems
Denis Brodsky – Vice President for Relations with Employees, Miratech. 20 years of experience in the field of personnel management, incl. from 2006 to 2014. In the banking sector, holding the position of HR director and member of the board of banks.
We naively believe that it is enough for a person to offer money for achieving the goal in order to get the desired result from him. This formula is wrong, it’s not really a formula, it’s just an illusion.
10 years ago, someone thought that in our country only 15-20% of the projects to implement KPI generally bring some effectiveness. And recently conducted a study and it turned out that people who really understand their KPIs are not just ticking “I’m aware”, but you can be sure that they really understand their goals – as much as 15%! And there is no certainty that the employee will choose the most correct way of performing his KPI.
On the contrary, people invent a huge number of ways to achieve KPI by the easiest method. Bankers know this like no other. In addition, there is no way to ensure that the KPI will be reached before the moment when we measure the performance of the KPI. And most importantly, there is no real confidence that KPI is delivered correctly.