Home > Economics > Why Bonuses Do Not Improve Performance

Why Bonuses Do Not Improve Performance

A new paper by Mike Norton and his collaborators sheds a very interesting light on the ways that organizations should use money to motivate their employees, boost morale and improve performance – benefiting both employees and their organizations. The researchers looks at a few ways that money can be spent and how that affects outcomes such as employee wellbeing, job satisfaction and actual job performance. Specifically, they examine the effect of prosocial incentives, where people spend money on others rather than themselves, and they find that there are many benefits to spending money on others think about the inherent joy of gift-giving.

Read the full article at Dan Ariely » Better and more Social Bonuses «.

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Categories: Economics
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