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

Author

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

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:vfsc17:168286
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    Cited by:

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    2. Jason J Sandvik & Richard E Saouma & Nathan T Seegert & Christopher T Stanton, 2020. "Workplace Knowledge Flows," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(3), pages 1635-1680.
    3. Fischer, Mira & Rilke, Rainer Michael & Yurtoglu, B. Burcin, 2020. "Two Field Experiments on Self-Selection, Collaboration Intensity, and Team Performance," Rationality and Competition Discussion Paper Series 241, CRC TRR 190 Rationality and Competition.
    4. 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.
    5. 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.
    6. 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.
    7. 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.

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    More about this item

    Keywords

    team work; bonus; incentives; loss; gain; non-routine; exploration;
    All these keywords.

    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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