Companies should understand that the carrot is better than the stick approach when it comes to motivation.
I personally feel that this is one of the issues of the UK public selector. They tend to keep the wrong staff, who will just underperform and get the same payraises as others, as why do more? you may get promoted if/when a higher position becomes available but that maybe sometime never and the staff do perform well get fed up and leave for more money.
TBH most people have realised there is no point in doing more than bare minimum now. You don't get rewarded for it so why bother. I'd rather go home and put my feet up than do unpaid overtime...
When I first started working the company I was with at the time paid quite big bonuses. A few years later and with a new CEO they reduced it to a pathetic amount. So people just stopped giving a crap about their performance. Why would they, they're there to get paid not as a favour.
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