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And the winner is…? The motivating power of employee awards

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  • Neckermann, Susanne
  • Frey, Bruno S.

Abstract

This paper reports the findings from a survey experiment conducted online at IBM to assess the impact of employee awards on behavior in the workplace. We document that the introduction of a hypothetical award has statistically significant effects on the stated willingness to contribute to a public good. Our design allows us to estimate the impact of different award characteristics related to, for example, how public or how valuable the award is. The stated willingness to share important information with colleagues increases monotonically with the value of the monetary payment or gift that comes with the award and is lower for gifts than payments of equal value. Moreover, publicity has a substantial positive effect: a ceremony increases stated contributions by as much as increasing the value of the award from $0 to $1000.

Suggested Citation

  • Neckermann, Susanne & Frey, Bruno S., 2013. "And the winner is…? The motivating power of employee awards," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 66-77.
  • Handle: RePEc:eee:soceco:v:46:y:2013:i:c:p:66-77
    DOI: 10.1016/j.socec.2013.06.006
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    References listed on IDEAS

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    Cited by:

    1. repec:wsi:ijimxx:v:21:y:2017:i:05:n:s1363919617400060 is not listed on IDEAS
    2. Jana Gallus & Bruno S. Frey, 2016. "Awards: A strategic management perspective," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1699-1714, August.
    3. repec:spr:scient:v:112:y:2017:i:3:d:10.1007_s11192-017-2429-4 is not listed on IDEAS
    4. Matthias Greiff, 2015. "Integrating Affective Responses into Game Theory: A Dual Selves Model," MAGKS Papers on Economics 201517, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    More about this item

    Keywords

    Incentives; Non-monetary compensation; Awards; Motivation; Experiment;

    JEL classification:

    • C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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