But the trick is that it’s always worth striving for better results, trying something new, and seeking beyond the familiar. And here we come very close to the issue of monetary motivation
We all know that if an employee’s bonus amount depends on how well the goals are achieved
, the employee will
consciously or unconsciously lower their targets
to a comfortable level to ensure they reach them. Even if we tell them that they will receive a bonus if they achieve 60%, they will just normalize the goal to 60%. For example, if they know they can easily achieve revenue of 50 million and likely even exceed it, under classical KPI, they will set the goal at 50 million. However, under OKR, they will set their target at 84 million and easily achieve 60% of it (approximately 50 million). So, all the ambition we wanted is nullified when the bonuses depend on OKRs.
Some of you may argue, “Well, nothing stops them from trying to earn more!”