What Happens When You Reward Before Behavior?

Most company playbooks follow the same logic: prove it first, then earn it. Hit the goal, then get the raise. Show leadership traits, then take the lead. Stay for two years, then get promoted.

It’s logical. It creates accountability. But in some situations, especially in hiring and internal promotions, flipping that model—offering the reward before the behavior—can be more effective.

I’ve experienced both sides of that equation.

Early in my career, I was offered more and more responsibility within a regional team. I didn’t live near the company’s headquarters, but I made it clear: if I were to relocate and take on a national role, I expected the title and authority to match. My boss agreed. The company paid for my move.

On my first day in the office, I sat down to define the new role. He looked at me and said, “What role?”

“You’ll have to prove you can do the job first,” he told me. “Then we’ll talk.”

It was deflating. The commitment had already been made. The work was already in motion. And yet I was being asked to do the job without the recognition, compensation, or title that had been implied. I did the job. I got the promotion. But the trust had already eroded.

That moment stuck with me. It shaped how I now lead and hire. Because while “prove it first” seems fair, it can also be shortsighted. In many cases, it demotivates the very behavior you're hoping to inspire.

There’s research to support this.

In behavioral economics, the “gift exchange” model shows that when employers offer generous wages upfront, employees tend to work harder—even without close supervision. It’s not about compliance. It’s about reciprocity. People respond to trust with effort (Fehr & Gächter, 2000).

Psychologists Edward Deci and Richard Ryan have also demonstrated that autonomy and recognition increase intrinsic motivation. When someone is trusted with a stretch role or given early authority, they’re often more driven to succeed.

But there’s a limit. The overjustification effect, shown in a 1973 study by Lepper, Greene, and Nisbett, suggests that offering rewards without a clear link to behavior can actually reduce motivation. People lose interest when rewards feel unearned or transactional.

That’s the balance to strike. Pre-rewarding works when it’s tied to real belief and clear expectations. It fails when it’s vague, insincere, or withheld after the effort has already begun.

In business, this has practical applications:

• In hiring, offering a stretch title to an experienced candidate can increase buy-in and accountability—if they’re ready for it.
• In promotions, moving someone up based on demonstrated potential (not just tenure) can unlock faster growth.
• In new initiatives, giving autonomy early can motivate people to rise to the challenge.

Used well, pre-rewarding isn’t a shortcut. It’s a signal. It says: we believe you’re capable of growing into this.

But once you’ve made that signal, you’ve made a commitment. If you pull back later, it’s not strategic caution. It’s a broken promise.

Rewarding before behavior isn’t about being generous. It’s about being intentional. When trust is extended early, people remember it. And when it’s withheld or reneged after the work has already started, they remember that even more.

The strongest leaders don’t wait at the finish line. They help people get there—because they believed they could.

📚 References:

• Fehr, E., & Gächter, S. (2000). Fairness and Retaliation: The Economics of Reciprocity
• Deci, E. L., & Ryan, R. M. (1985). Intrinsic Motivation and Self-Determination in Human Behavior
• Lepper, M. R., Greene, D., & Nisbett, R. E. (1973). Undermining Children’s Intrinsic Interest with Extrinsic Rewards: A Test of the Overjustification Hypothesis

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