Car dealerships and other organizations can unintentionally foster entitlement among employees when rewards and privileges are handed out too freely. On the latest episode of Lessons in Leadership, Dave Anderson, founder of LearnToLead, stresses the importance of cultivating a culture where employees earn and deserve their rewards rather than expecting them.
Meritocracy principle
Anderson explains the distinction between earning, deserving, and entitlement:
- To earn is to acquire through merit
- To deserve is to be worthy or qualified
- And entitlement occurs when employees believe special rewards or privileges are owed.
He warns that even small gestures, such as helping an employee with a house deal once, can set expectations that quickly turn into demands. Similarly, perks like free Saturday lunches can foster entitlement if they are not tied to performance. Anderson notes that some employees may even complain about the rewards if they do not earn them. For instance, Monday-through-Friday sales targets must be met before sales representatives qualify for free lunches, reinforcing both accountability and appreciation for the reward.
Cultural outcomes
Implementing an earn-and-deserve approach strengthens organizational culture and communicates the importance of merit and responsibility. Anderson describes this cultural attitude as a way to eliminate the “cultural poison” of entitlement. Ultimately, over-rewarding or giving too frequently can erode respect for rules and effort.
"Whatever we get too easily, we never fully appreciate."
Nevertheless, Anderson urges dealers to carefully guard against entitlement by ensuring that all rewards and recognition are earned and deserved. He emphasizes that a focus on merit, accountability, and cultural integrity is essential for maintaining a high-performance workforce, promoting respect for effort, and preventing long-term negative effects on employee morale. Dealers who instill these principles can create a workplace where performance drives reward and employees truly value their accomplishments.
