Reward for recognizing mistakes but disincentivize low standards



  • We are a new start up (in finance) and still trying to figure out the basics on employee incentives. If this is not the right SE, please let me know and I will move it.

    When monitoring projects, we want our team to recognize any errors that they missed in their analysis when deciding to commit to a project and feel incentivized to do so. On the other hand, we don't want to encourage low standards during their analysis phase.

    We want to reward for catching on the mistakes as soon as possible and disincentivize letting errors cause damage that careful monitoring would have prevented.

    Q: Reward the team's ability to spot mistakes, yet disincentivize low standards. What are some good mechanisms to do that? Any bonus-pay systems ideas to help achieve that?

    Thanks



  • Don't use money to reward quality.

    Studies show that money is an excellent motivator for routine tasks that involve no thinking, and a terrible motivator for tasks that require creativity.

    Experts are motivated by autonomy, mastery, and purpose [Spam disclaimer: No relation to the book nor author].

    So:

    1. Create an environment that provides autonomy, mastery, and purpose
    2. Pay your employees enough that they do not feel undervalued
    3. Get out of the way.


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