Should companies reward output only?

Clear goals can give employees comfort and direction. But if you only incentivize output, you risk unwanted behaviors: chasing numbers instead of quality, tolerating “whatever it takes” shortcuts, and - worst of all - killing meaning at work.

As Mohamad Al Masri recently wrote:

“Purpose, autonomy, and mastery don’t just feel good, they lead to more sustained, higher-quality performance than reward systems alone.”

And he’s right. Most employees want to do well. But meaning, autonomy, and the chance to learn are the fuel that sustains performance, far more than an output target ever could.

⚡ In today’s talent market, expertise alone no longer guarantees success. What companies really need are people who are curious, adaptable, and hungry to learn. If you reward only results, you encourage “safe bet” goal setting - while innovation and agility quietly wither.

📉 According to Gallup, manager engagement has dropped for the first time in years. That’s dangerous: disengaged managers lead disengaged teams. And if managers themselves feel stripped of meaning, how can they inspire it in others?

The dilemma gets sharper with AI. These tools promise “faster and more” - but should companies now expect output at machine speed? Or should they use the time gained to help humans focus on what AI cannot replace: creativity, problem-solving, and finding meaning in the work?

✨ My take? Productivity is good until it isn’t. True performance comes from balance: rewarding not just what gets done, but how people learn, experiment, and grow in the process.

Here are 3 ways companies can start:

1. Equip managers with coaching and feedback skills so they fuel growth, not just output.

2. Celebrate experiments, bold ideas, and lessons learned - not just wins.

3. Create room for purpose: connect the dots between individual contributions and the bigger picture.

Because in the long run, output-only cultures don’t scale. People do.

👉 What’s rewarded more in your company today: output, or learning and growth?

Further readings:

Gallup - State of the Global Workplace report

Mohamad AlMasri - Motivation is often misunderstood as a matter of effort