Big Salary Hikes Today Could Backfire Psychologically, University of Stirling Study

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Think hefty merit raises, commissions, and bonus structures are the best motivators? Maybe not. Such remuneration schemes can actually backfire. Staff morale can take a big dive during lean times, when bonuses and raises are curtailed. Temporary declines in income—say, from lower sales commissions due to a business slowdown— have a much larger impact on our feeling of contentment than income gains of the same magnitude.

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