Thursday, October 4, 2012

The Daily Stat: To Boost Workers' Productivity, Tell Them How They Rank

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OCTOBER 4, 2012
To Boost Workers' Productivity, Tell Them How They Rank
After a German wholesaler began privately informing its warehouse workers how they ranked among other employees on pay and performance, their average productivity jumped 6.8%, an effect that showed no signs of abating over the long term, say Jordi Blanes i Vidal and Mareike Nossol of the London School of Economics. The initiative, which didn't cost the company a thing, suggests that providing information about employees' relative performance is unambiguously beneficial to a firm's profitability, the researchers say.
Source: Tournaments Without Prizes: Evidence from Personnel Records
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