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The Smart SupervisorTuesday, April 7, 2009. Big Bonus = Poor Performance. I heard some fascinating new research that shows excessively large bonuses are associated with poorer performance. The researcher noted that higher at-risk compensation motivates us (the desired effect) but also acts as a stressor (an undesirable effect). At a certain point, huge bonuses create more stress than motivation resulting in poorer performance. Check out the full Marketplace report. The researcher sounds a bit like Dr. Nick.
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