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The Effect of Incentives in Non-Routine Analytical Teams Tasks - Evidence from a Field Experiment

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  • Englmaier, Florian
  • Grimm, Stefan
  • Schindler, David

    (Tilburg University, School of Economics and Management)

  • Schudy, Simeon

Abstract

Despite the prevalence of non-routine analytical team tasks in modern economies, little is known about how incentives influence performance in these tasks. In a field experiment with more than 3000 participants, we document a positive effect of bonus incentives on the probability of completion of such a task. Bonus incentives increase performance due to the reward rather than the reference point (performance threshold) they provide. The framing of bonuses (as gains or losses) plays a minor role. Incentives improve performance also in an additional sample of presumably less motivated workers. However, incentives reduce these workers\' willingness to \"explore\" original solutions.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Englmaier, Florian & Grimm, Stefan & Schindler, David & Schudy, Simeon, 2018. "The Effect of Incentives in Non-Routine Analytical Teams Tasks - Evidence from a Field Experiment," Other publications TiSEM 161fc70b-8d41-4500-8a01-d, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:161fc70b-8d41-4500-8a01-d84a11408c82
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    1. Fischer, Mira & Rilke, Rainer Michael & Yurtoglu, B. Burcin, 2020. "Two field experiments on self-selection, collaboration intensity, and team performance," Discussion Papers, Research Unit: Market Behavior SP II 2020-201, WZB Berlin Social Science Center.
    2. Grözinger, Nicola & Irlenbusch, Bernd & Laske, Katharina & Schröder, Marina, 2020. "Innovation and communication media in virtual teams – An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 201-218.
    3. Bulte, Erwin & List, John A. & van Soest, Daan, 2021. "Incentive spillovers in the workplace: Evidence from two field experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 137-149.
    4. Florian Englmaier & Stefan Grimm & Dominik Grothe & David Schindler & Simeon Schudy, 2021. "The Value of Leadership: Evidence from a Large-Scale Field Experiment," CESifo Working Paper Series 9273, CESifo.
    5. Josse Delfgaauw & Robert Dur & Oke Onemu & Joeri Sol, 2022. "Team Incentives, Social Cohesion, and Performance: A Natural Field Experiment," Management Science, INFORMS, vol. 68(1), pages 230-256, January.
    6. Jason J Sandvik & Richard E Saouma & Nathan T Seegert & Christopher T Stanton, 2020. "Workplace Knowledge Flows," The Quarterly Journal of Economics, Oxford University Press, vol. 135(3), pages 1635-1680.
    7. ACCLASSATO HOUENSOU, Denis & SENOU, Melain Modeste, 2019. "Incentive scheme and productivity in microfinance institutions in Benin," MPRA Paper 95379, University Library of Munich, Germany, revised 02 Aug 2019.

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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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