Are Holiday Bonuses a Good Investment for Companies?

The Takeaway

When Markus Dohle, the chief executive of Random House, announced at the company holiday party that each and every employee who had been with the company for a year – from top executives to their secretaries – would be receiving a $5,000 bonus, the room erupted in cheers.
The decision by Random House was largely tied to the success of “50 Shades of Gray.”   No employee anticipated or specifically worked toward the reward, so what effect will this bonus have on employee loyalty?
Explaining the nature of incentives is Dan Ariely, author and professor of behavioral economics at Duke University.

Will you support The World with a monthly donation?

Every day, reporters and producers at The World are hard at work bringing you human-centered news from across the globe. But we can’t do it without you. We need your support to ensure we can continue this work for another year.

Make a gift today, and you’ll help us unlock a matching gift of $67,000!