In August 2008 Marc Hogan was bet £1 that he couldn’t become a stand up comic in less than 12 months and perform a one man comedy show at the Edinburgh Comedy Festival in August 2009 for 21 nights. He won the bet!
Nearly all businesses are built on the principles of carrot and stick, or incentives and disincentives.
I hate the term “carrot and stick” because it makes out that I’m an ass and I don’t know any person that wants to be a donkey (please don’t Google “I want to be a donkey,” your computer will melt).
The problem of incentives e.g. bonuses is that they can:
i) Foster short-term thinking;
ii) Become addictive and encourage excessive risk taking;
iii) Encourage cheating, shortcuts and unethical thinking.
It doesn’t take a genius to work out what that could do to a company, industry or even an economy but the reason companies use bonus incentives is that they’re:
a) clear and understandable; and
b) easy to measure.
But in my experience, and according to Daniel Pink author of the New York Times Bestseller “Drive”, bonuses work best when the task is routine (and dare I say it boring) e.g. report filling. So, what happens if the tasks are a bit more complex?
It’s up to us to be a bit more creative.
From the moment we learn to talk we quickly realise that the most annoying word we can say to a parent is, “why?”
It’s the same when we’re adults – no boss wants to be asked, “why are you asking me to do this?”
So if you’re the boss or a team leader how would you respond? Your job is to create a compelling purpose that goes beyond the task.
I was speaking to a company that makes windows last week; how do you make that more compelling?
Well their product keeps people safe and warm, saves money, saves electricity, helps the environment, and adds value to people’s homes.
The reason people will buy their product is not because of the price or the fact that they are fit for purpose – every window company can compete on price and the specification of a window.
The reason that people buy from them is that they trust them because the customer knows that they will do anything and everything to deliver on their promise. This level of customer service is highly prized. If we can do that for our customers, are we also doing it for our people?
So why do your people work for you? The reason a person will work for you and will be intrinsically motivated to work hard is because they know that their company cares for them, will pay them fairly, will listen to them, look after them, encourage them, will not berate them when they make a mistake but help them to achieve their potential. They work for you because you will allow them flexibility in how they do their job by giving them autonomy to do their job in a way that is good for them and good for your company and your customers. In short, they work hard because they trust you that you will deliver on your promises that you are there for the long term and you will look after them and develop them for the long term.
So when the task is routine, sure, give them a bonus. But if you start to use bonuses simply because they are easy and measurable, rather than creating a compelling purpose for your people to do their job, you may end up with people who are only looking out for themselves, and we all know what that can lead to…
My Editor for years told me that all employees needed was incentives and that bonuses work, that our economy was built on carrot and stick. But my experience becoming a stand-up and getting to know other comics (many of who don’t get paid for their trials) taught me that there is more to motivation than incentives.
A comic gets up on stage for a different reason, they are intrinsically motivated to perform. Nearly all comics realise that it could take many, many years before they earn a penny from comedy, yes they love the feedback from a crowd, but many are just as proud when after many hours of thinking they manage to craft a good gag. The truth is they have a purpose and that’s what drives them. What sense of purpose can you give your people?
Click here to watch Marc’s showreel. If you would like to find out more about Marc, visit www.marchoganlive.com or to book him for a speaking event please contact your favourite speaker bureau.