“If You Give An Employee A Cookie…”

The Dangers Of Unplanned Rewards And What To Do Instead

In the fast-paced and ever-changing business landscape, managers often face difficult decisions when it comes to retaining talent and maintaining morale. When a valued, highly productive employee threatens to leave or expresses dissatisfaction, the temptation to offer an unplanned bonus, base salary increase, or a sudden title change can be strong. As leaders we have all done it.  This gestures by us, while well-intentioned, sometimes sets off a chain reaction of unintended consequences-much like the classic children’s book “If You Give A Mouse A Cookie” by Laura Numeroff.

A Cookie, a Bonus, and the Neverending Cycle of Escalating Demands

In “If You Give a Mouse a Cookie,” a seemingly simple act of generosity, offering a mouse a cookie, triggers a cascade of further requests: a glass of milk, a straw, a napkin, and so on, until the mouse circles back to wanting another cookie. The story’s circular logic is a perfect metaphor for what can happen when employers respond to employee demands with unplanned rewards.

While it isn’t true with all employees, sometimes when certain employees receive an unexpected bonus or a title change to appease their demands, their demands don’t end there.  The initial act of generosity with certain individuals can create a sense of entitlement or expectation, leading the employee to make further requests in the future. Not all employees respond this way to a one-time gesture, but some do, and unfortunately for the company, the gesture only increases and galvanizes these employees’ often unsubstantiated and unjustified beliefs that they are entitled to more.

The Unintended Consequences of Discretionary Rewards

Discretionary bonuses, those that are unplanned and not tied to specific performance metrics, are dangerous. The moment a manager offers such a reward in response to a demand, they risk setting a precedent, not just with the individual but for the entire organization. Other employees may soon expect similar treatment, especially if word spreads about the bonus or title change. This can lead to entitlement attitudes, resentment among peers, disruption of internal equity, and significant damage to your company culture.

The Importance of Structure and Fairness

To avoid these pitfalls, organizations should establish clear policies around bonuses, salary increases and promotions. Additionally, all rewards should be tied to highly transparent criteria and regularly communicated throughout the organization. When employees understand the standards for recognition and advancement, they are less likely to view rewards as negotiable or arbitrary.  Organizations should focus on proactive management, including:

·      Set clear expectations for performance and advancement.

·      Communicate openly about how and why rewards are given.

·      Foster a culture where recognition is earned, not demanded.

Additionally, when the temptation comes (which it will) to do a discretionary reward, managers must remember to consider the broader impact of their decisions when determining whether or not to give an unplanned bonus, base salary or title change.  Leaders should ask:

·      Will this decision create expectations for future rewards?

·      How will other employees perceive this action?

·      Does this align with our company’s values and compensation philosophy?

Typically, after asking these questions, managers will refrain from awarding the discretionary reward.  The overall organizational damage of doing one is just too great.

Reward Management:  Always Remember The Mouse

The next time you’re tempted to offer an unplanned bonus or title change to appease an employee, remember the mouse and his cookie. By learning from the circular logic of Numeroff’s beloved book, managers can avoid the trap of reactive rewards and build a workplace where recognition is meaningful, fair, and sustainable.