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Research: BIG Employee Incentives can Hinder Rather than Help

By May 19, 2012 No Comments

A recent study from a research team with The California Institute of Technology (Caltech) suggests that the fear of losing a big incentive can actually hurt performance. This study shows what can happen when activities become learned and the incentive no longer is effective or participants become risk averse. One easy way to re-engage your employees is to include “random intermittent reinforcement” (brief games of chance producing a random number of points) within an incentive program.

 

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