A few
years back The Economist published an
interesting article entitled:
“Carrots Dressed as Sticks.”
This article still provides an important lesson for today’s workplace.
Tanjim
Hossain of the University of Toronto and John List of the University of Chicago
conducted a study that focused on the hypothesis that the value people attach
to objects is affected by what they already have; people seem to hate losing
something already in their possession more than gaining something equivalent
that is not currently theirs.
The study
was conducted in a Chinese electronics factory. The managers in this factory were interested in exploring
ways to make their bonus plans more effective. Instead of focusing on the amounts of the bonuses, Hossain and List instead decided to concentrate
on the wording of the letter
informing workers of the details of the bonus plan.
One group
of workers was told at the beginning of the week that they would receive a
bonus of 80 yuan ($12) at the end of the week if they met a certain production target. A second group was told they had “provisionally” been
awarded the same bonus, but they would “lose” it if they did not reach their
target.
The
different ways of describing the bonus actually amount to the same thing. However, the hypothesis of the study
was that the second way of describing the bonus would work better. The workers would think of the
provisional bonus as “already theirs,” and work harder to prevent it from being
taken away. This is exactly what
Hossain and List found. The fear
of loss was a better motivator than the prospect of gain.
Would we
find the same results everywhere?
Possibly, but probably not.
What motivates employees is often surprising and unpredictable. There is no one answer. Every organization is different, every
work situation is different, and every individual is different.
Employers
would do well to remember this. It
is easy to mistakenly assume that we know what the key motivators are for our
staff. The best organizations
don’t assume—they listen. They take
the time to understand their workforce.
By doing this, they are in a better position to understand what their
employees truly value—and what makes them want to stay.
What
motivates the people that work in your organization? There won’t be one answer. That’s the challenge—and the beauty—of human motivation.
Thanks to John White for this week’s post. John is the principal of JD White & Associates an HR consulting firm
that focuses on Compensation and Benefits, HR Effectiveness and Compliance, Professional
Development and Communication.
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