Shawnee Love   •  
November 10, 2011

A truth I have observed many times over is that it is easier to give than it is to take away. For example, it is easier to offer a free trial and then convert people to paid subscriptions than it is to convince people to renew at a higher rate.

It is also easier to offer stock options that vest than ask people to sell back shares when they want to move on.

It is far easier to give raises than it is to enforce pay cuts.  (In fact pay cuts can be illegal if arbitrarily required with no notice or consideration given.)

The implication for organizations is that they shouldn’t start offering a perk, benefit, etc. if they have any inkling that they might want to discontinue it in the future. Taking away benefits, perks, or compensation even if not particularly significant in the scheme of things really irks employees, and irked employees leads to issues with morale, attendance, and retention.

A solution for companies who have the means to give more is to give randomly.

I don’t mean give to random people, but rather to ensure the giving isn’t connected to any specific event or time.  Now I am well aware that this flies in the face of most management advice you will hear, because it is well known that rewards and recognition should be given in a timely fashion, i.e., as close to the situation that inspired the reward/recognition as possible.  However, as soon as you give a bonus for a successful year, employees will expect another bonus the next successful year.  If you give a bonus that second year, you have effectively set a precedent you will be expected to follow forever.  If you give a bonus that isn’t connected to anything, you will only be committing a random act of kindness. The beauty of a random act of kindness is that it inspires warm happy feelings without expectations and entitlement.  Although some people may be wooed away to companies that are willing to commit to extras such as annual bonuses, extra vacation, and other perks, most will stay because you have created a warm happy culture where they feel valued and because they never know when good things will happen.