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A Field Experiment in Motivating Employee Ideas

Author

Listed:
  • Michael Gibbs

    (University of Chicago and IZA)

  • Susanne Neckermann

    (University of Chicago and ZEW)

  • Christoph Siemroth

    (University of Essex)

Abstract

We study a field experiment at a large technology company. Employees were encouraged to submit ideas on process and product improvements. The company randomly assigned nineteen teams into treatment and control groups. Treatment team employees received rewards if their ideas were approved. Nothing changed for control team employees. Our main finding is that rewards substantially increased the quality of ideas. Rewards increased participation in the suggestion system but decreased ideas per participating employee, with no net effect on the quantity of ideas. Broader participation persisted after the reward was discontinued, suggesting habituation. We find no evidence for motivational crowding out.

Suggested Citation

  • Michael Gibbs & Susanne Neckermann & Christoph Siemroth, 2017. "A Field Experiment in Motivating Employee Ideas," The Review of Economics and Statistics, MIT Press, vol. 99(4), pages 577-590, July.
    • Handle: RePEc:tpr:restat:v:99:y:2017:i:4:p:577-590
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00631
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    Cited by:

    1. Florian Englmaier & Stefan Grimm & Dominik Grothe & David Schindler & Simeon Schudy, 2024. "The Effect of Incentives in Nonroutine Analytical Team Tasks," Journal of Political Economy, University of Chicago Press, vol. 132(8), pages 2695-2747.
    2. Gosnell, Greer & Metcalfe, Robert & List, John A, 2016. "A new approach to an age-old problem: solving externalities by incenting workers directly," LSE Research Online Documents on Economics 84331, London School of Economics and Political Science, LSE Library.
    3. Elisa Matthewes & Anis Nassar & Christian Zihlmann, 2022. "Fostering innovation: Experimental evidence on the effectiveness of behavioral interventions," PLOS ONE, Public Library of Science, vol. 17(10), pages 1-17, October.
    4. Goette, Lorenz & Senn, Julien, 2024. "Incentivizing interdependent tasks: Evidence from a real-effort experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 227(C).
    5. Cirera, Xavier & Martins-Neto, Antonio Soares, 2023. "Do innovative firms pay higher wages? Micro-level evidence from Brazil," Research Policy, Elsevier, vol. 52(1).
    6. Blaufus, Kay & Piehl, Kevin & Schröder, Marina, 2025. "Input versus Output Incentives in Idea Generation - An Experimental Analysis," VfS Annual Conference 2025 (Cologne): Revival of Industrial Policy 325392, Verein für Socialpolitik / German Economic Association.
    7. 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.
    8. Andrea Blasco & Olivia S. Jung & Karim R. Lakhani & Michael Menietti, 2016. "Motivating Effort In Contributing to Public Goods Inside Organizations: Field Experimental Evidence," NBER Working Papers 22189, National Bureau of Economic Research, Inc.
    9. Rigtering, J.P.C. (Coen) & Weitzel, G.U. (Utz) & Muehlfeld, K. (Katrin), 2019. "Increasing quantity without compromising quality: How managerial framing affects intrapreneurship," Journal of Business Venturing, Elsevier, vol. 34(2), pages 224-241.
    10. Englmaier, Florian & Grimm, Stefan & Schindler, David & Schudy, Simeon, 2018. "The Effect of Incentives in Non-Routine Analytical Team Tasks – Evidence from a Field Experiment," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168286, Verein für Socialpolitik / German Economic Association.
    11. Erik Sarrazin, 2026. "Incentives and Creativity in Groups — Experimental Evidence on Creative Processes and Dimensions," Working Papers 2601, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    12. Michael Gibbs & Friederike Mengel & Christoph Siemroth, 2023. "Work from Home and Productivity: Evidence from Personnel and Analytics Data on Information Technology Professionals," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 1(1), pages 7-41.
    13. Dao, Hung M. & Lehmann, Selina L. & Acar, Oguz A. & Deichmann, Dirk, 2026. "Not all success is created equal: The innovation costs of extreme success," Research Policy, Elsevier, vol. 55(1).
    14. Gibbs, Michael, 2021. "Job Design, Learning & Intrinsic Motivation," IZA Discussion Papers 14285, IZA Network @ LISER.
    15. Gibbs, Michael & Mengel, Friederike & Siemroth, Christoph, 2025. "Innovator Networks Within the Firm and the Quality of Innovation," IZA Discussion Papers 17966, IZA Network @ LISER.
    16. Manthei, Kathrin & Sliwka, Dirk & Vogelsang, Timo, 2017. "Performance Pay May Not Raise Performance – A Cautionary Tale Based On Evidence from Large Scale Field Experiments in a Retail Chain," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168287, Verein für Socialpolitik / German Economic Association.
    17. Ni, Dan & Chen, Siyuan & Wu, Shaoxue & Mui Hung Kee, Daisy & Yu, Zhuyan & Wu, Wen & Chen, Chong, 2024. "Hey, Boss, Please Share! An Exploitative Perspective on Supervisor Idea Credit Taking and Employees’ Reactions," Journal of Business Research, Elsevier, vol. 185(C).
    18. Maurizio Pugno, 2024. "Creativity, well-being, and economic development: An evolutionary approach," Journal of Evolutionary Economics, Springer, vol. 34(1), pages 205-225, January.
    19. Manthei, Kathrin & Sliwka, Dirk & Vogelsang, Timo, 2018. "Performance Pay and Prior Learning: Evidence from a Retail Chain," IZA Discussion Papers 11859, IZA Network @ LISER.
    20. Lakshminarayana Nittala & Sanjiv Erat & Vish Krishnan, 2022. "Designing internal innovation contests," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 1963-1976, May.
    21. Christoph Siemroth, 2024. "Economics Peer-Review: Problems, Recent Developments, and Reform Proposals," The American Economist, Sage Publications, vol. 69(2), pages 241-258, October.
    22. 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.

    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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