Motivation and Incentives →
- 06 Jun 2018
- Research & Ideas
Cut Salaries or Cut People? The Best Way to Survive a Downturn
When times are tight, companies usually respond with employee layoffs. But what if they held on to workers and cut their salaries instead? New research by Christopher Stanton and colleagues has the answer. Open for comment; 0 Comments.
- 29 Apr 2018
- Working Paper Summaries
Analyzing the Aftermath of a Compensation Reduction
This study of the effects of compensation cuts in a large sales organization provides a unique lens for analyzing the link between compensation schemes, worker performance, and turnover.
- 09 Apr 2018
- Sharpening Your Skills
The Dark Side of Performance Bonuses
To motivate workers, employers often turn to incentives such as money or recognition. What's become clear is that these programs can also result in unintended consequences—like a financial crisis. Open for comment; 0 Comments.
- 26 Mar 2018
- Research & Ideas
To Motivate Employees, Give an Unexpected Bonus (or Penalty)
Susanna Gallani finds that employees can be more motivated by the anticipation of a reward or punishment than the actual payoff. Open for comment; 0 Comments.
- 06 Feb 2018
- Working Paper Summaries
Subjectivity in Tournaments: Implicit Rewards and Penalties and Subsequent Performance
Analyzing data from a Chinese manufacturing company, this study explores side effects of subjective performance evaluations in a setting where workers are rewarded based on performance rankings and subject to both rewards and penalties. Among other contributions the paper highlights factors that could impact the overall effectiveness of incentive systems.
- 31 Jan 2018
- Research & Ideas
American Idle: Workers Spend Too Much Time Waiting for Something to Do
Workers across the country are spending far too much time doing nothing—and it's costing their companies $100 billion annually. Research by Teresa Amabile and Andrew Brodsky. Open for comment; 0 Comments.
- 22 Jan 2018
- Sharpening Your Skills
Why You Are Unhappy at Work
Sometimes the deck is stacked against you at work. Learn more about how you can overcome toxic co-workers, paycheck blues, and a job set up for failure. Open for comment; 0 Comments.
- 17 Jan 2018
- Research & Ideas
If the CEO’s High Salary Isn't Justified to Employees, Firm Performance May Suffer
Researcher Ethan Rouen discovers that rank-and-file employees understand the boss deserves a big salary, but only when the number is fully explained. Open for comment; 0 Comments.
- 19 Oct 2017
- Research & Ideas
How Charitable Organizations Can Thwart Excuses for Not Giving
Charitable organizations provide all kinds of reasons for donors to give money—but sometimes their messaging does just the opposite, shows research by Christine Exley. Open for comment; 0 Comments.
- 09 Oct 2017
- Working Paper Summaries
Habit Formation and Rational Addiction: A Field Experiment in Handwashing
This study in rural West Bengal considers the role of habituation in an essential but unpopular preventive health behavior: handwashing with soap. The study finds that frontloading both financial and social incentives facilitates habituation, and agents internalize this habitual nature. Findings help guide the design of optimal incentives to increase the adoption of positive habits.
- 07 Aug 2017
- Working Paper Summaries
Governance Through Shame and Aspiration: Index Creation and Corporate Behavior in Japan
By exploiting the unique features of Japan’s JPX-Nikkei 400 index, this paper examines how membership in a stock index serves as a source of prestige that can motivate managers and influence corporate governance norms. Findings are important for understanding non-pecuniary mechanisms to induce meaningful changes in corporate behavior.
- 02 Aug 2017
- What Do You Think?
Summing Up: Why Can’t Organizations Engage Their Employees?
Who is responsible for generating employee engagement? The employee, or the employee's managers? Readers of this month's James Heskett column have a lot to say on the issue. Open for comment; 0 Comments.
- 19 Jul 2017
- Research & Ideas
Why Government 'Nudges' Motivate Good Citizen Behavior
Research by John Beshears and colleagues finds that psychological nudges can be a cost-effective way for governments to get citizens to do the right thing. Open for comment; 0 Comments.
- 20 Apr 2017
- Cold Call Podcast
Making Health Insurance That Consumers Actually Like
By motivating its insurance customers to take care of themselves, South African firm Vitality has expanded to the United Kingdom and China. In this podcast, Professor Regina Herzlinger discusses potential impacts of this model for health care in the United States. Open for comment; 0 Comments.
- 29 Mar 2017
- Research & Ideas
The Story of Why Humans Are So Careless With Their Phones
Consumers act more recklessly with the products they own when better versions become available, according to research by Silvia Bellezza, Joshua M. Ackerman and Francesca Gino. This comic by Josh Neufeld explains. Open for comment; 0 Comments.
- 22 Mar 2017
- Research & Ideas
What's the Ideal Frequency for a Sales Quota?
Sales reps feed on two forms of compensation: salary, and a bonus tied to achieving a periodic quota. Would a more frequent quota incentivize better numbers? Doug Chung and Das Narayandas offer some answers. Open for comment; 0 Comments.
- 27 Feb 2017
- Working Paper Summaries
Seeking to Belong: How the Words of Internal and External Beneficiaries Influence Performance
Employees seek to fulfill a deep and fundamental need to belong at work. Positive words from one’s own colleagues can lead to an increased sense of belonging and can, in turn, create enhanced motivation. Results from experiments involving real-world and laboratory data help support the argument.
- 22 Feb 2017
- Working Paper Summaries
Incentives, Peer Pressure, and Behavior Persistence
Organizations often create initiatives to encourage adoption of new behaviors, or to stimulate performance improvements from existing practices. This research explores whether and how incentivized behaviors at a California hospital persist beyond the duration of the initiative.
- 26 Jan 2017
- Working Paper Summaries
Relative Performance Benchmarks: Do Boards Get It Right?
Use of relative performance based (RPE) grants has been steadily increasing. Common wisdom is that such grants help induce costly effort from the CEO by shielding them from performance shocks that are outside of their control. This study raises questions about the use of index-based benchmarks in lieu of a narrower set of specific peers.
Knowing What Your Boss Earns Can Make You Work Harder
Learning what your co-worker earns can make you less productive, but knowing your manager's paycheck can motivate you to work harder. Research by Zoë Cullen. Open for comment; 0 Comments.