Effective Bonuses for Employees to Increase their Productivity

Employees motivation is directly related to their productivity in the workplace. By introducing bonuses, employers can increase employee engagement and effectiveness. The purpose of this study is to identify the relationship between an increase of the employees productivity and the introduction of special bonuses in the workplace, to determine which bonus has the greatest positive effect on employees productivity. In this study, the following types of bonuses were studied: increase in salaries for employees, the possibility of switching to a more flexible schedule, additional days for annual leave. In this study, 30 employees of the company “Lenstroydetal” received 3 different types of bonuses within 3 months. Employees productivity was measured weekly during this study and then was compared with previous measurements, when employees did not receive bonuses at the workplace. In the course of this study, not only the percentage increase in the output of a particular product was measured, but also the financial costs of introducing each of the bonuses were estimated. Using various methods of statistical testing of hypotheses, conclusions were drawn about bonuses and their impact on employees productivity. The results of this study indicate that despite the fact that there is a slight increase in the productivity of workers in each of the experimental groups, a significant statistical difference in the increase in productivity of workers between different groups was not revealed. Keywords: bonuses, efficiency, productivity increase, motivation