Highlighted by Thomas Goubin
From Performance Reviews: Lessons Learned From A Unicorn by Willy Braun
Separating feedback from compensation decisions, through a continuous feedback loop, ensures not only a higher sense of fairness and an avoidance of bias such as the availability heuristic, it also allows a shift from an external motivation based discussion (raise or variable) to a more intrinsic motivation based discussion (mastery, purpose).
From Performance Reviews: Lessons Learned From A Unicorn by Willy Braun
Also, since Herzberg’s (1966) motivator-hygiene theory, most of the research has shown that intrinsic motivations (autonomy, mastery, purpose…) are prime drivers of workers satisfactions and productivity, when extrinsic motivations play a much lesser role, being mostly drivers of dissatisfaction. Thus, organizations relying too much on money as a performance reward run the risk of not really bo…