Many companies acknowledge employees for their outstanding input to the business by offering them bonus salary. This regulation can serve as an encouragement for few,hence, also owning bad outcomes for others.
Managements have different approaches to their member’s welfare. Recognitions in one company might differ with another’s company. I firmly believe that employees would respect and value the management more when their effort is recognized and appreciated. Presenting extra money could be the reassurance that what they’re doing for the company is important and it gives the sense of ownership and belonging which is very important to the company. A great company should have the power to influence the employees to treat work as if it were their own business, not solely because they are working there. Thus, it is easier to work and not become a burden for them.
The only negative side to this is that it can be a competition to someone and they become obsessive and neglect the life outside the work and end up living their life fully to work which could lead to mental breakdown.
The downfall for a company is when they fail to recognize the importance of their staff and give less than the staff deserve. Giving them extra money is very good already but there is a better way of encouraging employees to work hard is by giving them the stability and flexibility and work-life balance. People with work-life balance are proven to have much less stress and perform better at work.
In conclusion, I believe the best way to encourage employees to work hard is the combination of rewarding staff with extra money and work-life balance. So the staff are doing their work for purpose not only for the company purposes but for themself also.