Thursday, April 18, 2013

The Daily Stat: Why Incentives Can Demotivate Employees

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APRIL 18, 2013
Why Incentives Can Demotivate Employees
An incentive system aimed at curbing tardiness at a commercial-laundry plant ended up decreasing productivity 1.4%, costing the plant nearly $1,500 a month, say Ian Larkin of Harvard Business School and Lamar Pierce and doctoral student Timothy Gubler of Washington University. The program, under which employees with perfect attendance were eligible for drawings to win gift cards, squelched workers' intrinsic motivation to behave well, and the monetary aspect of the reward may have encouraged employees to game the system, the researchers suggest.
Source: How to Demotivate Your Best Employees
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