July 4, 2009

Pay for Performance Backfires

I know: you're thinking "No, Duh." But you can't say it too many times.

"We find that financial incentives may indeed reduce intrinsic motivation and diminish ethical or other reasons for complying with workplace social norms such as fairness. As a consequence, the provision of incentives can result in a negative impact on overall performance," said Dr Bernd Irlenbusch of the London School of Economics.

Full report here.

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(photo via flickr)