Irrational but Predictable! When to Use Monetary Incentives to Motivate Employees

Monetary incentives have gotten a bad rap lately. In a recent New York Times opinion, well-known author Alfie Kohn boldly proclaims “science has confirmed” that monetary rewards amount to “bribes” that don’t work. If that’s true, why do virtually all modern business organizations provide employees monetary incentives for performance? It turns out that the truth about the effectiveness of monetary rewards in business settings is more nuanced than Kohn suggests.

In this webinar, Emory University Professor Karen Sedatole explores the efficacy of monetary incentives. You will learn:

• The theory behind how and why people respond to monetary and non-monetary rewards
• Examples of successes and failures from well-known companies such as Nordstroms, Safelite Autoglass, and Wells Fargo
• Research-based insights regarding when monetary rewards will work and when they might not

An award winning researcher, Dr. Karen Sedatole is an expert in the areas of reward systems and employee performance measures. Her research specifically focuses on the design and effectiveness of performance measurement and reward systems, the role of forecasting and budgetary systems within organizations, and control in interorganizational collaborations. Her most recent research on bias in employee evaluations can be read in the Harvard Business Review.