Final answer:
Wage incentives can lead to issues such as reduced work quality, inequity among employees, short-term focus, unethical behavior, and employee burnout.
Step-by-step explanation:
Wage incentives, while intended to boost productivity and employee morale, can sometimes lead to unforeseen issues. Here are five potential problems that can arise with the use of wage incentives:
- Reduced quality of work: Employees might prioritize speed over quality to maximize their earnings, potentially compromising the standard of work.
- Inequity among employees: Wage incentives can create disparities among employees, potentially leading to a sense of unfairness or reduced teamwork.
- Short-term focus: Employees may focus on immediate gains rather than long-term objectives or company health.
- Risk of unethical behavior: To achieve targets and earn more, some employees may engage in unethical or risky practices.
- Burnout: Constant pressure to perform for incentives can lead to employee burnout and decreased job satisfaction over time.
In summary, while wage incentives can improve productivity, they must be carefully designed and implemented to avoid these potential problems.