Performance punishment: How it impacts employees in a new workplace?

Performance punishment occurs when high-performing employees are overloaded with more work instead of being rewarded, leading to decreased motivation, burnout and job dissatisfaction. In new workplaces, this practice can erode trust in leadership and increase turnover, hampering growth. To avoid this, it's essential to recognize and fairly reward employee contributions, distribute workload evenly and foster a supportive environment. Addressing performance punishment helps sustain employee engagement and promote long-term organizational success.

Introduction

In the fast-paced and competitive environment of a new workplace, employees are often eager to prove their worth and make a significant impact. However, there is an overlooked phenomenon that can stifle this enthusiasm and contribute to long-term problems: performance punishment. This concept refers to the practice of overloading high-performing employees with additional work or responsibilities as a "reward" for their success, without offering meaningful recognition, compensation, or support. Over time, this can lead to demotivation, burnout and even high turnover. For organizations, especially those in their early stages, understanding and addressing performance punishment is crucial for fostering a positive and productive workplace culture.

What is Performance Punishment?

Performance punishment occurs when employees who consistently perform well are assigned more tasks or responsibilities beyond their original scope, often with little or no increase in compensation or recognition. While it may seem logical to give more responsibility to those who have proven capable, this approach can backfire if not managed correctly.

The root of performance punishment lies in a misconception: the belief that highly capable employees can shoulder more tasks indefinitely without negative consequences. Unfortunately, this practice can undermine the very productivity and engagement that organizations seek to promote, especially in newer workplaces where employees are already dealing with uncertainty and change.

Why Performance Punishment happens in new workplaces

In a newly established workplace—whether it’s a startup, a new department within an organization or a growing organization—the pressure to meet goals, manage limited resources and rapidly scale can be immense. Employers may rely heavily on their top performers to ensure these goals are met and over time, these high achievers may become the default "go-to" people for additional work. Several factors contribute to the occurrence of performance punishment in new workplaces:

• Lean teams: In a smaller team, high performers are often called upon to fill in gaps, take on additional responsibilities, or lead multiple initiatives, simply because there may be no one else available to handle the workload.
• Ambitious targets: New organizations or growing entities frequently set ambitious goals to gain a foothold in the market or meet stakeholders’ expectations. As a result, there is a tendency to demand more from those employees who have already proven their ability to deliver results.
• Lack of formal structures: In the early stages of the new establishments, there may be a lack of formal HR processes for assigning tasks, evaluating performance and providing recognition. This can result in an unintentional burden on top performers who are continuously handed more tasks without receiving proportional rewards.
• Urgency to succeed: The urgency to succeed in a new workplace can push management to assign critical tasks to the same high performers repeatedly, believing that success is guaranteed if these individuals are involved.

While these factors are understandable in the context of a new organization, the long-term consequences of performance punishment can be damaging.

The effects of performance punishment on employees

1. Decreased motivation: One of the most immediate effects of performance punishment is decreased motivation. When employees who consistently perform well are met with more work rather than recognition, promotions, or pay raises, they may begin to feel undervalued. Over time, this can lead to disengagement. In a new workplace where enthusiasm and innovation are key drivers of growth, this loss of motivation can be particularly harmful.
2. Burnout: Performance punishment often leads to burnout, especially when high performers are consistently overloaded without adequate support. In a new workplace environment where teams are small and the pressure is high, burnout can happen quickly. Employees may begin to feel exhausted, both mentally and physically, which can result in decreased productivity, creativity and overall job satisfaction.
3. Inequality and resentment: High-performing employees may begin to perceive performance punishment as unfair. They see themselves being overloaded with work while other employees are not held to the same standards or given similar levels of responsibility. This can create feelings of inequality and resentment within the team, ultimately leading to strained working relationships and reduced collaboration.
4. Job dissatisfaction and turnover: Over time, performance punishment can lead to job dissatisfaction, especially when employees feel they are being unfairly burdened without recognition. In a new workplace, where employee retention is critical to long-term success, losing top performers due to dissatisfaction can be particularly damaging. High turnover rates can also create instability, forcing the organization to spend additional resources on recruitment and training, which can slow down overall progress.
5. Erosion of trust in leadership: Performance punishment can erode employees' trust in management. If high performers feel that they are being exploited rather than rewarded for their efforts, they may begin to question the fairness and transparency of leadership. In new workplaces, where establishing strong leadership is essential for guiding the team and creating a positive work culture, this erosion of trust can be a significant setback.

What are the positives of performance punishment?

Though the term "performance punishment" generally has a negative connotation, there can be some potential positive aspects, depending on how the situation is handled:

1. Skill development: Taking on more responsibilities or challenging tasks can push high performers to grow their skills and experience in different areas, broadening their expertise and making them more versatile professionals. Successfully managing increased workloads can boost the confidence of top performers, proving to themselves and others that they can handle complex tasks under pressure.
2. Visibility and recognition: High performers often get noticed by leadership when they take on extra responsibilities which can increase their visibility within the organization. This visibility can lead to promotions or future opportunities, even if initially there is no immediate reward.
3. Preparation for leadership roles: By being trusted with more work, high performers may develop the managerial or leadership skills needed for future roles, as they learn to prioritize, delegate and make strategic decisions.
4. Job security: High-performing employees who consistently deliver may find themselves more secure in their roles. Organizations are likely to retain individuals who can handle greater workloads effectively.

If employers recognize and reward these efforts properly, these benefits can outweigh the downsides. However, it is advised that the top management should avoid performance punishment. 

How to avoid performance punishment in a new workplace?

Given the potential negative impact of performance punishment, it is important for new workplaces to adopt strategies that recognize and reward high performance without overburdening employees.

1. Acknowledge and reward success: Recognition is a critical part of maintaining employee morale and motivation. Acknowledge the contributions of high-performing employees through formal recognition programs, bonuses, or opportunities for advancement. Providing tangible rewards helps employees feel valued and motivated to continue performing at a high level.
2. Distribute workload fairly: It is important to distribute the workload across the entire team rather than relying too heavily on a few top performers. Ensure that tasks and responsibilities are spread evenly and consider expanding the team if high workloads persist.
3. Provide opportunities for growth: Instead of simply giving high-performing employees more work, offer them opportunities for professional development and growth. This could include leadership training, mentorship roles, or involvement in strategic projects that align with their career goals.
4. Create a culture of feedback: Encourage open communication between employees and management. By fostering a culture of feedback, high performers can express concerns about their workload and management can take steps to address potential issues before they escalate.
5. Monitor employee well-being: Regularly check in with employees to assess their stress levels, workloads and overall well-being. In a new workplace, where the pace of work can be especially intense, keeping an eye on employee well-being is crucial for long-term success.

Conclusion

In a new workplace, where energy, ambition and innovation drive progress, it is vital to avoid the pitfalls of performance punishment. By recognizing the signs of performance punishment and taking proactive steps to reward, support and distribute work fairly, organizations can create a more positive work environment that promotes sustainable performance. High performers are valuable assets to any organization, but their continued success depends on proper support, recognition and opportunities for growth. Balancing these elements is key to building a thriving, motivated team that is prepared to take on the challenges of a growing organization.