Alfie Kohn in his seminal article in the Harvard Business Review entitled “Why Incentive Plans Cannot Work” stated:
It has been “shown over and over again [that] the more you reward people for doing something, the more they tend to lose interest in whatever they had to do to get the reward”.
“Incentives…do not create an enduring commitment to any value or action. Rather, incentives merely – and temporarily – change what we do”.
“As for productivity, at least two dozen studies over the last three decades have conclusively shown that people who expect to receive a reward for completing a task or for not doing that task successfully, simply do not perform as well as those who expect no reward at all”.
Frederick Hertzberg famously stated that just because too little money can irritate and demotivate, it does not mean that much more money will result in satisfaction and increased motivation