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Bonuses are Killing Your Business

As long as the task involved only mechanical skill, bonuses worked as expected. The higher the pay, the better the performance. That makes sense. But once the task called for even rudamentary cognitive skill, a larter reward led to poorer performance.

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The best use of money as a motivator is to pay people enough to take the issue of money off the table. Pay people enough so that they're not thinking about money, they're thinking about the work.

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