Most firms have some sort of bonus plan wherein they distribute profits to employees once they've retained some earnings and have met retirement plan obligations. These bonus plans are often referred to as "Incentive Compensation Plans", which of course, implies that employees will be "incentivized" to work harder and perform better knowing that there is a carrot dangling at the end of their 60 hour work week.

Unfortunately, most compensation plans are patterned around the faulty notion that engineers (as well as doctors, lawyers and candlestick makers) are motivated externally based on rewards (or punishment). This form of pop psychology goes back as far as Pavlov's salivating dogs, and the pigeon that rings the bell, certain to be rewarded with bird seed. Well, as all of you astute readers know, humans are not dogs or pigeons. As it turns out our motivation is intrinsic, that is, it is internal, based on our morals and beliefs.

We have been taught that as leaders one of our most important jobs is to motivate people. But, I am here to tell you that we cannot motivate people to work harder, or better, we can only afford them the means to get the job done to the best of their ability. Now you say, "Come on, DeStephen, you mean if I tell someone I'll give them a $20,000 bonus to do something they won't do it"? No, I'm not saying that. Anyone can be "bribed" to do a specific (short-term) task. But changing their innate disposition to "work hard" or the way you want them to over the long term, just isn't going to happen.

Now I have a question for you, one that I've asked to audiences of hundreds, and have never gotten an answer (except for clever musings) - let's assume I am your immediate supervisor, and today I come into your office and proclaim, "Jim (Sue, Bob, Mary), starting tomorrow I will double your pay!" My question is, "What will you do differently tomorrow that you would not have done otherwise"? Hmmm...

Will you work harder to finish the report that's due - or would you have stayed and finished the report anyway, because deep down you know it is your responsibility. Would you call to set up a client meeting that you wouldn't have otherwise - or would you have done it just the same because you know others are counting on you to bring in work.  You get the point. Simply put, our motivation comes from within, and management's attempts to bribe us to do that which we intrinsically are more than willing to do, is not only fruitless, but in some respects, demeaning.

So, should we have bonus plans and reward systems - certainly. Should we base them on the notion that with a bonus as an incentive, people will work harder or better - no.

Ray DeStephen

Schnabel Engineering