Using bonus and awards for motivating project employees
Purpose This paper aims to discuss the appropriate uses of bonuses and award in recruiting and motivating project employees. Design/methodology/approach It is a conceptual discussion of human resources management (HRM) practices, supported by the author's professional experience and observations in real life project settings. Findings Bonuses and awards not only provide extrinsic financial rewards but also provide positive feedback to recipients. Extrinsic financial benefits (such as sign on bonus, and retention bonus) may enhance the total compensation package and positively affect an employee's job related decision at least for the short term. He/she may accept a job offer or choose to stay on a project longer until the completion of a critical milestone because of the bonuses. However, positive recognition of employee performance (through the use of spot award, holiday award, or non financial certificate of appreciation) is also a useful means to motivate employees. In addition, managers on international assignments need to pay attention to practices specific to host countries. Practical implications The practices discussed in this paper are based on real life experience and observations. When they are used properly in conjunction with other HRM arrangements, bonuses and awards can be used to mitigate and delay turnover, and to motivate employees to increase their work performance. Originality/value This paper not only draws on theories and information from the HRM and project management literature but also draws from the author's own management experience. Thus, the relevance and validity of the proposed concepts and practices have been proven in actual functional and project management settings.