Bonuses that pay it forward may bring more satisfaction

10/10/2013 | Harvard Business Review online

Research shows that individual rewards can hurt employee morale and that "prosocial bonuses" may be more effective, Lalin Anik and Jordi Quoidbach write. Under such programs, employees are given bonuses but told to spend the money on charities and co-workers. "Rather than spending a significant amount of time wondering about the big holiday bonus, what if your employees spent some time figuring out how their donations can impact the world, or what kind of gift will make their co-workers happy?" Anik and Quoidbach write.

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