# Surprise bonuses decrease productivity

Natural experiment reveals how unexpected rewards affect employee performance.

- **Source:** [Management Science](https://pubsonline.informs.org/journal/mnsc)
- **Published:** 2025-10-10
- **Topic:** [Business](https://brifing.si/c/business)
- **Original article:** <https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2022.04085?af=R>
- **On Brifing:** https://brifing.si/s/9144eaa6-a2cc-4b8b-86f2-8f00969b5e2c

## Impact of surprise bonuses

The natural field experiment demonstrated that unexpectedly given bonuses reduce employee productivity. The research revealed such rewards create negative psychological effects rather than motivation.

## Study methodology

The study was conducted by giving surprise bonuses to employee groups in different companies. Comparisons were made with control groups and performance metrics were meticulously tracked.

## Expectation management

Researchers found employees perceived unexpected rewards as 'standard' rather than 'gifts'. This negatively affected future performance expectations.

## Implications for reward systems

The findings challenge traditional reward systems. It shows companies need to develop more predictable and transparent systems to boost employee motivation.

## Psychological factors

Experts note surprise bonuses create feelings of 'unfairness' among employees. This can disrupt team dynamics and reduce long-term productivity.

## Management strategy implications

The research emphasizes the need to review HR policies. Reward systems must align with employee psychology and company culture for optimal results.

## Sources covering this story

- https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2022.04085?af=R — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
