What Challenges Do Leaders Face with Reward Systems?
One of the main challenges leaders face is ensuring that the reward system does not inadvertently promote unhealthy competition or unethical behavior among employees. Another challenge is maintaining fairness and transparency, as perceptions of bias can lead to dissatisfaction and disengagement. Furthermore, economic constraints might limit the capacity to offer substantial extrinsic rewards, necessitating a focus on creative and meaningful intrinsic rewards.