This Working Life: Don’t flash the cash when rewarding staff at year’s end

Financial incentives can result in comparison and resentment among colleagues, and taxes can take much of the good out of them anyway

Cash is not always king: pay-related bonuses often backfire as a reward and incentive for staff. Picture: Getty/iStockphoto

With the end of the year looming, and so many employees having worked long hours in isolation throughout 2021, businesses are turning their attention to finding a way to reward employees for their dedication. However, a challenging year may have exhausted any cash reserves, and many managers will have to carefully consider their incentive programmes.

Motivating employees can be challenging at the best of times, but when it’s combined with financial incentives it can often ...