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Stan Parsons once told me that you can buy somebodys hands but you cant buy their heart and thats where their loyalty lies nor can you buy their brain and thats where their creativity comes from Stan was right money is not a very effective motivator you can buy at least you can rent someones hands but even then money is not a very good motivator and thats why most bonus programs backfire money doesnt motivate people responsibility achievement and recognition do so when bonuses are set up to recognize outstanding achievement for something over which an employee has responsibility bonuses can be effective but its not the money thats motivating its the recognition so if youre gonna use monetary bonuses there are 7 rules youll want to follow to maximize their effectiveness rule number one tie the bonus to something the employee has control over in the case of a ranch manager that might be gross margin the employee may not be able to control cattle prices or the weather and som
