TELMA LE GUEN
During Mauritius’s 2024 election race, both the ruling and opposition parties pledged a 14th-month bonus (also called the 14th cheque) to employees – a promise that quickly grabbed attention from voters, employers, and employees alike. However, uncertainties surround the details: who will be eligible, whether it will be a one-time payment or a permanent change, and how it will be funded. While there’s no doubt the extra bonus could offer employees financial relief in today’s inflationary climate, there is another layer of concern beyond the economic impact. How will this move shape workplace culture and employee motivation? Will the 14th-month bonus enhance productivity, or could it disrupt the delicate balance between guaranteed pay and performance-driven incentives?
For many employees, news of a 14th-month bonus proposal is a welcome relief, even if it is a one-time payment. In today’s economy, with soaring inflation and growing financial pressures, this extra payment could help ease stress. In Mauritius, where the 13th cheque is already compulsory and viewed as an integral part of annual compensation, the introduction of a 14th cheque could feel like a natural extension of existing practices. Additionally, for those not benefiting from recent government wage relativity adjustments, an extra cheque might feel like a long-overdue gesture. While it may provide a temporary morale boost, the broader question is whether this relief will translate into sustainable benefits for employees or organisations.
Adding another guaranteed bonus like the 14th cheque raises critical questions about the future of performance-driven cultures. Meritocracy, at its core, is a system where rewards align with individual performance, effort, and achievements. In many companies, employees strive for recognition, driven by both intrinsic motivation and clear rewards such as bonuses, promotions, or special development opportunities. But guaranteed bonuses can blur the lines:
High performers may lose motivation if extra effort appears undervalued or if guaranteed payments become the norm. The distinction between base pay and rewards for exceptional contribution starts to fade, potentially reducing overall drive. A one-size-fits-all approach like the 14th cheque favors equal payouts for all employees, regardless of individual output, which may undermine meritocratic values. This could lead to complacency, particularly among low performers, while high performers feel less incentivized to go above and beyond.
For instance, consider a local retail chain where employees already benefit from a mandated 13th cheque. Assume this company rewards high performers through variable incentives tied to, for example, sales targets, customer feedback scores, or operational efficiency. A cashier who excels in sales and customer service might receive an annual bonus of Rs 20,000, while an underperforming colleague would not qualify for any additional payment.
With the introduction of the 14th cheque, every employee—regardless of performance—receives an extra month’s salary as a guaranteed bonus. While this provides short-term financial relief and improves morale across the board, high performers might feel undervalued. They may perceive that their extra effort no longer carries the same weight, knowing that underperformers receive the same reward.
Employers may struggle to balance budgets while paying a 14th cheque to all employees and maintaining attractive variable incentives for top performers. If they cut back on performance-based bonuses to fund the guaranteed payments, the connection between effort and reward weakens, potentially reducing motivation across the board.
Employers might need to rethink their systems, blending guaranteed pay with innovative incentives. For example, using the same retail chain example, management could introduce team-based rewards alongside the 14th cheque. If a branch meets its quarterly sales targets or improves customer satisfaction, the entire team could share a bonus pool. This hybrid approach maintains the morale boost of the 14th cheque while encouraging collaboration and sustained productivity.
Ultimately, the 14th-month proposal implementation raises pressing employee performance questions for business leaders. Could this shift toward guaranteed bonuses dismantle the gains made from traditional merit-based systems? Can companies find ways to maintain a high-performance culture while accommodating a demand for more guaranteed pay? Perhaps this is an opportunity for employers to redefine their approach to incentives – blending guaranteed pay with new, innovative forms of recognition. A hybrid approach may unlock collaboration and sustainable productivity in a changing workplace.