Team-based reward could have the unintended consequence of employees turning a blind eye to unwanted behaviour, according to researchers.
Academics from the University of Bath looked at four behavioural studies comparing employee behaviour between those who are individually rewarded and those who are in team-based systems, producing their report, ‘Turning a Blind Eye to Team Members’ Unethical Behaviour: The Role of Reward Systems‘.
Professor Hajo Adam, an organisational psychologist, said the studies showed how employees who were part of team-based reward systems were less likely to report unethical behaviour versus those who were individually rewarded.
“Team-based reward systems, initially sparked by Japanese corporate success, have been widely adopted and they have become a staple of good management practice with proven benefits,” he explained.
Workplace culture
“But managers should be aware that they may be stoking up trouble for the future in terms of undesirable employee behaviour.”
While team-based reward has the positive intention of increasing collaboration, he added, it also meant that employees’ desire to preserve that team environment could mask underlying problems.
To overcome this, managers would need to be more vigilant and understand the ethical risks, he advised.
In addition, they should consider implementing a more tailored reward system, “mixing team-based and individual rewards in a balance that works for their particular industry or sector”.
Secondly, they should create “an environment where employees can blow the whistle on bad behaviour and can act safely on their moral anger generated by witnessing such acts”, he suggested.
One way organisations can foster this environment is to support colleagues to prioritise their “moral intuition” by developing soft skills such as emotional intelligence. They should also emphasise the benefits of acting on their intuition for the wider business.
The University of Bath’s research is published amid continuing workplace culture issues at a number of high profile employers. Recent reports of negative cultures affecting employees include ambulance services, fire services and NHS England.
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