A larger reward leads to a poorer performance?
That doesn’t make sense, does it?
Science says our common rewards system may not only fail, it actually backfires.
Economists at MIT, University of Chicago and Carnegi Mellon say, STOP rewarding workers for their performance accomplishments.
Unless it’s a “dumb” job, aka, a job requiring only mechanical skills, then the “carrot and the stick” analogy seem to work quite well. People will perform better when you offer them a reward.
But, if the task calls for even a rudimentary level of cognitive skill, people’s performance diminishes when offered a reward for better performance.
Can that be?
That means, motivating people to perform better by offering rewards such as monetary compensation doesn’t really work.
This is an unbelievably fascinating and engaging short 10-minute Youtube video that you need to watch.
My questions for you:
If what they say is true…
1. How can we apply this thought process to our own online businesses?
2. How can we apply it to our employees?
3. How can we apply it to our Outsourced help, our VA’s, our JV Partners and affiliates?
4. How can we apply it to ourselves?
5. And, possibly more thought provoking, how can we apply it to motivate our customers or clients to take action?
Let’s pick it up in the comments below.