Cash Incentives Impair Teamwork

Highlights
The first research from the International Site Foundation calls on companies to rethink cash rewards.

Incentive experts have been saying it for years, but now there's scientific proof: Cash really isn't king — at least not when it comes to motivating collaborative behavior. The results of a series of nine experiments conducted jointly by three research universities — the University of Minnesota, Florida State University, and the University of British Columbia — and released by the iSITE Foundation suggest that money encourages individuals to work alone, play alone, and put distance between themselves and others.

In each experiment, participants were broken into three groups: one shown pictures or screensavers of money, one shown nothing, and one shown a neutral object such as a seascape. After this “priming,” participants were asked to perform a series of tasks or were exposed to an environment in which they could display social behavior, such as assisting someone with a task. In each instance, the findings were identical. When money was introduced into otherwise neutral situations, people became less helpful toward their peers and the people conducting the experiments, they stopped asking for help, and they even sat farther away than those in either of the control groups. In one situation, those exposed to money chose to work alone 83 percent of the time.

Motivating the Middle

Kathleen Vohs, PhD, the lead re-searcher in the study and McKnight Land-Grant Professor at the University of Minnesota's Carlson School of Management, believes the research is directly applicable to incentives, and industry experts concur. “This research shows us that cash not only may not be the best motivator, it may actually work against what you're trying to accomplish because most business projects have a team aspect to them,” says Bob Vitagliano, CITE, executive director of iSITE.

One area in which this research might be particularly helpful is in identifying ways to motivate employees in the middle tier of performance. This is an important area when you consider that 25 percent of midperformers are actively seeking other jobs, according to a recent Leadership I.Q. survey of more than 70,000 employees, managers, and executives.

“Understanding the impact of cash on the middle performer is important because people tend to throw money at individuals if they threaten to leave the company,” says Fay Beauchine, executive vice president, meetings, incentives & events at Carlson Marketing Group, Minneapolis. “There is a war for talent right now, and it's just as much in the middle as at the top. So if people are thinking about leaving, you'd better understand the reasons why, and you'd better also understand what can keep them.”

While cash is always the first thought, Beauchine notes that it might not even be relevant to why someone is leaving — and as this study indicates, it might even distance a worker further from the company rather than engender loyalty. “People just naturally assume that it's money, but it could be other issues. And it really boils down to how engaged they are in the company they work for.”

Vitagliano agrees that motivating the middle tier is frequently done with cash rewards, and he doesn't think that is effective. “I think that's why we never were able to really move them forward the way we should have,” he says.

Just because cash is not the answer, however, doesn't mean that other incentives are. “If cash isn't a good motivator, what is?” Beauchine asks. “It hasn't been proven that travel is a perfect motivator, but it opens the door for the discussion that if cash isn't a good award, what could be a better award, and why?”

The full study, The Psychological Consequences of Money, is available to purchase from www.sciencemag.com; SITE members can download a copy, along with Beauchine's analysis, for free at www.InternationalSITEFoundation.org.

RSS Share

Want to use this article? Click here for options!
© 2012 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Search 125,000+ Venues

Search Meeting Space

Find Event Venues with Cvent

The Meeting Planning Blog

Face2Face Latest Posts

Sign Up for Our Free E-Newsletters



Meetings Collaborative

Rate your experience with meeting venues and suppliers.

Facility / Hotel

 
Powered by: Meetings Collaborative
Aega Awards

Latest Webinar

Beyond Marketing: What Else Social Media Can Do for Your Meetings
Thursday, May 24 | 2-3 p.m. EST

Most associations know that online social networks can be handy tools to spread the word about their meetings and events. But social media can do so much more than market. Our social media expert will uncover ways you can leverage social media to discover the educational content your members are craving, engage and energize your community, build relationships, and even simplify your meeting processes. Register Now!

VIEW ALL ARCHIVED WEBINARS

Recent Comments

Powered by Disqus

Back to Top

Explore Our Newsletters


Meeting Planner Survival Guide

Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Must-See Meeting Files

Visit the MeetingsNet expert-advice site, where we’ve got top meeting pros on camera answering a variety of your questions as well as a collection of educational—and sometimes offbeat—editors’ pick lists — from the top tech tools to the best books for meeting professionals.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVBs, tourist boards, and facilities you need for your next meeting.

Deal Finder

Special offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

SMM PORTAL

Your source for Strategic Meetings Management info and intelligence

Facebook   Twitter   LinkedIn   RSS Feed

Inside Current Issue

May 2012 CMI

May 2012 FIM

April 2012

April 2012 RCM

April 2012

April 2012 AM

MM March 2012

March/April 2012 MM

Browse Back Issues