Why (Microsoft's) "petty" financial rewards can backfire

Twenty Microsoft points. Worth about twenty-five cents.

Nothing would have cost less and felt more generous.

Tiny rewards are dangerous because they stop being gestures and become valuations. A warm thank-you says, “We noticed.” A digital coin worth half a Freddo says, “We noticed, ran the numbers and settled on this.” Now the recipient has been invited to price the relationship, and the relationship has lost.

Businesses keep doing this with the strange confidence of people who have never received one. Save a project that was sliding towards a cliff and enjoy a £5 voucher, delivered by an automated email with confetti. Spend £900 and unlock free delivery on an item you did not want. Wait six hours for a train and receive 43p in compensation after completing a form apparently designed by the train.

Scale matters. A deliberately silly token can charm: a biscuit, an absurd badge, the office’s ceremonial golden stapler. A meaningful reward can delight. The swamp lies between them, where loose change has been inflated into gratitude by somebody with a calculator.

Before approving a reward, translate it into something ordinary: a sandwich, a bus fare, five minutes of wages. If the comparison makes everybody stare at the table, remove the currency symbol. Say thank you properly, or give status, access, convenience or a joke worth retelling. The £5 voucher otherwise remains in the inbox, quietly recording the exact price of the gratitude.

Behavioural principles

Behavioural ideas at play in this post

Short, plain-English explanations of the principles behind this post, with links to related books and examples in the archive.