Managers used to believe that giving an employee a bonus for their hard work would make that employee happier. Today’s best managers know that employees typically are not happier when they spend their bonus money on themselves. However, employees tend to feel happier when they spend part of their bonus money on others. Even as little as five dollars spent on someone else can boost an employee’s happiness levels. Today’s best managers can help improve employee happiness by helping their employees give back and spend money to benefit others, rather than themselves.
Source: Norton, M. I., & Dunn, E. W. 2008, July-August. Help employees give away some of that bonus. Harvard Business Review, 27.
