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How Your Bonus Affects Your Colleagues’ Behavior

Real-life social experiment compares pay-for-performance vs. fixed salary outcomes

A bonus can tell you a lot about what really motivates employees (even if you think you already know)
Phanish Puranam
Sunkee Lee
Wed, 06/21/2017 - 12:01
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When organizations change how they compensate employees they are embarking on a social experiment, whether decision-makers know it or not. The trouble is the vast majority of these experiments are conducted unscientifically, yielding results that can be misleading or inconclusive.

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Comments

Submitted by dvanputten on Fri, 06/30/2017 - 05:47

Can anyone outperform the system?

This entire study is based on the assumption that an individual can outperform the process and system of an oprganization. It makes the assumption that individuals perform independently from the processes, tools, etc. provided. Is that possible? I dont think so. The basis of pay for perfromance is flawed at its foundation. 

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