Most organizations long for efficiency and effectivity, they will run countless programs to increasing flow and implement one framework after the other to find out it didn’t work in the end. Mostly because we forget it isn’t about the frameworks or the programs, it is about the people. The key driver for organizational success, productivity, innovation and job satisfaction is employee engagement. Engaging employees brings energy, creativity and commitment which has a huge and positive impact on work culture and performance. However, maintaining this engagement is a delicate balance that is influenced by how much effort employees have to put in their tasks and activities for the rewards they receive.
When effort and reward are in harmony employees feel valued and are motivated, which gives them fulfillment in their job and creates a hunger for growth. But when there is an imbalance it can lead to disengagement, stagnation or even burn-out and bore-out
The Effort-Reward Model is a simple model to visualize and therefore better understand employee engagement levels within four quadrants:
- High Effort / High Reward: Fulfillment / Satisfaction
- Low Effort / High Reward: Bored / Self-doubt
- High Effort / Low Reward: Desperate / Bitter
- Low Effort / Low Reward: Apathetic / Indifferent
The dimensions
Effort dimension: This dimension is about the level of energy, attention and focus an employee invests in their tasks and responsibilities. It reflects the drive of an individual to engage actively in their work. A high level of effort typically indicates a deep involvement, intrinsic motivation and a sense of ownership. The employee feels committed to the organizational goals and wants to contribute in a meaningful way. When there is not enough reward there is an increased risk of a burn-out. Low effort may indicate disengagement, reduced motivation or a negative perception about the tasks (too monotonous, unstimulating, or not aligned with their strengths). Such a lack of effort can also be a sign of bore-out.
Reward dimension: This dimension describes the level of fulfillment and satisfaction employees get from their work. It is closely tied to intrinsic and extrinsic motivators which includes personal growth, recognition, and a sense of accomplishment. When employees receive high rewards, they often feel valued, supported and recognized for their work. These rewards can be extrinsic in forms such as promotions, bonuses, or career development opportunities, as well as less tangible like praise, autonomy, and a sense of purpose. Employees who find high rewards in their work are likely the be more engaged, motivated and loyal to their colleagues and the organization. On the other hand, experiencing a low amount of reward may lead to dissatisfaction, disengagement and a sense of underappreciation. Which often leads to higher turnover rates and a lowered productivity. Employees that believe their effort stays unrecognized or that their contributions are not aligned with the rewards they receive may lead to a decline in overall morale and job satisfaction.
High effort / high reward: When employees get high rewards from high effort, they get a sense of fulfillment or a satisfying feeling which increases motivation and engagement. Employees in this quadrant are inspired to grow and are often in their flow which has a huge and positive impact on the organization. In this quadrant there is higher productivity, better teamwork and a stronger organizational culture. It also has a positive effect on the agility of the organization, these employees are more likely to embrace change, contribute to ideas and drive innovation. Which makes the organization more competitive and adaptive.
Low effort / high reward: Bored or self-doubting employees due to receiving too much reward for their effort (also referred to as over-rewarded disengagement), can create a paradoxical situation where excessive recognition or rewards diminishes their sense of accomplishment or purpose.
This can often be seen within employees and teams where there is not enough room for autonomy and a lack of challenge. But also, in overcompensated roles where there are limited responsibilities but high pay with little incentive to contribute in a meaningful way.
For the individual there is a large risk for bore-out and for organizations a decreased team morale, erosion of accountability, lack of innovation and talent drain.
High effort / low reward: Employees that feel desperate or are bitter about their work often experience a range of negative emotions and an inner struggle that can significantly impact their well-being, performance, and relationships. They have a high risk of burnout and have a tendency to get apathetic and decrease their efforts over time which leads them in the Low Effort / Low Reward quadrant. This downward spiral has not only an effect on the individual but also on the people around them which can have a huge impact on an organization because this can happen rather quickly.
Low effort / low reward: When employees feel apathetic or indifferent about their work, they experience disengagement. This disengagement affects their emotional connection, motivation, and overall contribution to their work. They are often detached and uninterested and do the minimum to survive in the workplace.
For the individual the negative effects are often a loss of motivation, diminishing self-worth, increased stress or resentment and alienation (the feeling of disconnection from their work and colleagues, with a high risk of isolation). For the team the negative effects are reduced collaboration, negative morale, inconsistent output and increased conflicts. And for the organization the negative effects are lower productivity, higher turnover, damage to culture, missed opportunities and higher costs.
The (not so) happy middle – content: And there is also the (not so) happy medium which can feel pleasant from time to time but has a lot of challenges. Employees in this state feel content but often feel stagnation and ease. This state is quite dangerous because it is easy to lose motivation for growth and change which can lower your motivation and/or rewards. This can result in a downward spiral with a lot of negative consequences.
Balancing Effort vs Reward
Achieving and maintaining a healthy balance between effort and reward is essential for long term engagement, productivity and everyone’s well-being. This balance isn’t a one-time fix but a continuous process that requires continuous effort and there isn’t one solution either. On an individual level you should start with an assessment (see section Self-Assesment), for teams you can add the team assessment (see section Team-Assessment) and for a broader approach you may want to start with a company wide survey (see section Company-Survey). Based on this data you can tailor you approach, below are some strategies that might help:
1. Open Communication
Do not underestimate the importance of honest and transparant conversations about workload, expectations and recognition, this might be daunting but extremely important. When there is no conversation, there is no change!
2. Personalize Rewards and Recognition
Everyone has different motivators and needs, some may value rewards such as bonuses, others may love some personal growth opportunities, flexible schedules or public recognition. Understanding the individual needs gives you the tooling to balance effort vs reward.
3. Empower Through Autonomy and Growth
Provide employees with truly meaningful challenges and autonomy to solve them will increase a sense of ownership and accomplishment. Opportunities for skill development, mentorship, and career progression ensure that employees see their effort contributing to long-term rewards.
4. Encourage Self-Reflection and Feedback
Employees should embrace self-reflection, using tools like the self-assessment provided but also as a way to give feedback to each other. Regularly reflecting on their engagement-levels and discussing with the people around them and their managers can help uncover hidden frustrations and create opportunities for improvement.
Self-Assessment
For each statement, rate yourself on a scale of 1 to 5:
- 1 – Strongly Disagree
- 2 – Disagree
- 3 – Neutral
- 4 – Agree
- 5 – Strongly Agree
Effort (X-axis)
- I invest a lot of energy and focus into my daily tasks.
- I feel consistently challenged in my role.
- I often take initiative and go beyond my basic responsibilities.
- My work requires significant effort, but it feels manageable.
Total Effort Score: _____ (Add your scores for statements 1–4)
Reward (Y-axis)
- I find my work meaningful and fulfilling.
- My efforts are recognized and appreciated by my team or organization.
- I feel a sense of personal growth and accomplishment in my work.
- I am satisfied with the outcomes of my efforts at work.
Total Reward Score: _____ (Add your scores for statements 5–8)
Interpreting the results
High Effort / High Reward (Fulfillment / Satisfaction):
You feel balanced in your work where your effort is matched by for you meaningful rewards. This balance creates engagement, growth and job satisfaction. You likely feel motivated, recognized for your contribution and are aligned with your personal and professional goals.
- Key actions:
- Reflect on what’s contributing to this balance and continue to cultivate it.
- Keep looking for new challenges or growth opportunities to keep yourself motivated and prevent stagnation.
High Effort / Low Reward (Desperate / Bitter):
You’re putting in significant effort but feel undervalued or unsupported. This imbalance can lead to frustration, bitterness or dissatisfaction. But there is also an increased risk for a burnout.
- Key Actions:
- Reflect on what rewards matter for you the most: recognition, career growth, work-life balance or any other reward you need and identify where gaps are.
- Have a conversation with your team or manager to address these findings and seek a way to resolve them.
Low Effort / High Reward (Bored / Self-Doubt):
You probably feel bored, maybe because you are underutilized or under challenged. This can lead to self-doubt or even a bore-out.
- Key Actions:
- Look for ways to participate outside of your responsibilities, take on new challenges or responsibilities that align with your interests and skills.
- Pursue professional development like trainings or courses to reignite your sense of purpose.
Low Effort / Low Reward (Apathetic / Indifferent):
You may be detached or uninterested and feel apathetic or indifferent about your work. This might signals a need for significant change to avoid further disengagement or stagnation.
- Key Actions:
- Identify the root causes of your detachement. Are they tied to your workload, work environment, or goals?
- Set small, achievable goals to rebuild motivation and momentum in your work.
- Seek mentorship to realign and find inspiration to increase your engagement at work.
Medium Effort / Medium Reward (Content):
You feel stable and comfortable but there may be a lack of excitement or ambition. While this state feels secure, it risks complacency over time which often results in a downward spiral.
- Key Actions:
- Reflect on long-term personal and professional goals to identify areas for growth.
- Take on new challenges (preferably outside of your comfort zone) to spark motivation.
- Actively request for feedback to uncover opportunities for development.
Team-Assessment
This assessment helps teams evaluate their balance between effort and reward. It creates openness and insights into engagement levels and identifies areas for improvement. Each team member should complete the assessment individually, and the results can then be aggregated and discussed during a team meeting.
Instructions
For each statement, team members rate the team’s performance on a scale of 1 to 5:
- 1 – Strongly Disagree
- 2 – Disagree
- 3 – Neutral
- 4 – Agree
- 5 – Strongly Agree
Effort (X-axis)
- Our team works together to solve problems and complete tasks efficiently.
- Team members take initiative and contribute beyond their responsibilities.
- Our workload feels manageable and is fairly distributed.
- We consistently focus on achieving our goals.
Total Team Effort Score: _____ (Add scores for statements 1–4)
Reward (Y-axis)
- The organization recognizes and appreciate our contribution.
- We feel a sense of accomplishment in our work.
- There are growth and development opportunities for team members.
- Our team culture supports collaboration, mutual respect, and well-being.
Total Team Reward Score: _____ (Add scores for statements 5–8)
Interpreting the Results
- High effort / high reward (Fulfillment / Satisfaction):
Your team feels highly engaged, motivated, and productive. Continue fostering this environment while maintaining the effort-reward balance. - High effort / low reward (Desperate / Bitter):
Your team is working hard but may feel undervalued or unsupported. Create transparency about this topic and discuss recognition, resources, and potential adjustments. - Low effort / high reward (Bored / Self-doubt):
Your team might lack challenges or clear goals. Identify ways to make work more engaging and create opportunities for increased autonomy. - Low effort / low reward (Apathetic / Indifferent):
Engagement and morale are low. Work with the team to reestablish purpose, clarify roles, and address obstacles to motivation and recognition.
Follow-Up Actions
- Team discussion:
Share individual results and calculate the average scores for each axis. Plot the team’s overall score on the Effort-Reward Model to visualize the current state. - Root cause analysis:
Discuss factors contributing to the team’s placement. What drives effort? What influences rewards? What changes can improve balance? - Action plan:
Create specific, measurable actions to address imbalances. For example:- If effort is high but rewards are low, introduce more recognition and growth opportunities.
- If rewards are high but effort is low, explore ways to increase challenges and engagement.
- Periodic check-ins:
Reassess the team’s effort and reward levels periodically to track progress and ensure continued alignment.
Company-Survey (add-on)
When your organization already has a survey in place i advise you to add just a couple of questions to it. Including this with self- and team-assessments gives a broader picture which can help resolve issues from both ways, bottom up and top down. If you discover contradicting results it may indicate that teams don’t feel save enough to be open during the team-assessment(s).
Instructions
Add these 3 questions to your company survey:
- Effort (X-axis):
How much energy and effort are you putting into your work? - Reward (Y-axis):
How rewarding and fulfilling is your work? - Control question:
Overall, I feel a healthy balance between the effort I give and the rewards I receive.
Interpreting the Results
High Effort / High Reward (Fulfillment / Satisfaction):
Employees feel that their efforts are recognized and appropriately rewarded. This balance fosters engagement, productivity and innovation. Teams and individuals in this state are likely motivated, committed, and aligned with organizational goals.
High Effort / Low Reward (Desperate / Bitter):
Employees feel overburdened or undervalued. This imbalance can lead to negative emotions like frustration, resentment or even worse a burnout. This will negatively impacting morale and productivity.
Low Effort / High Reward (Bored / Self-Doubt):
Employees may feel under challenged, even though they are receiving rewards. This situation is often a lack of real challenge which often leads to a lack of purpose, accountability and motivation.
Low Effort / Low Reward (Apathetic / Indifferent):
Employees may feel detached or unappreciated from their team or organization. This quadrant is the most concerning, as it is in indicator of lock of motivation and apathy which can be contagious to others in the organization.
Medium Effort / Medium Reward (Content):
Employees feel stable and comfortable but may lack the drive for growth or innovation. Over time, this can lead to complacency and stagnation with the danger of lowering their effort which may lower their rewards. This downward spiral can go quick and may lead to mayor productivity losses.
Follow-Up Actions for Companies
Keep employees informed about steps being taken to address their concerns.
- Analyze survey data:
Look for trends across departments, teams, roles or generations. Identify areas where there is significant imbalances and prioritize those. - Create conversations:
By conducting team-assessments or self-assessments you can better understand the underlying reasons for the results. Creating a safe work environment where employees feel safe to openly discuss any problems. - Enhance recognition and rewards:
Think of rewards not only in money but also in career opportunities, increased autonomy or room for mastery. Evaluate and adjust existing reward systems that are in place to better reflect the needs of the employees. - Make the survey recurring:
Repeat the survey periodically to track progress and measure the effectiveness of interventions.