Whole-team rewards and nudge tactics the best practice for incentives: IRF

Whole-team rewards and nudge tactics the best practice for incentives: IRF

Nudge tactics and rewarding a top-performing a team, instead of having team members compete with one another, make up some of the findings in a newly-

Nudge tactics and rewarding a top-performing a team, instead of having team members compete with one another, make up some of the findings in a newly-released for designing incentives.

The Incentives Research Foundation (IRF) report on behavioural economics promises to help incentive organisers craft the most suitable incentive for their group, by applying psychology.

Called Using Behavioural Economics Insights in Incentives, Rewards, and Recognition: A Nudge Guide, it suggests things like using subtle incentive practices called nudges to make the reward system more user-friendly, and suggesting rewarding a whole team instead of having members compete for reward, saying cooperative incentives are “more effective and valuable than competitive incentives”.

Employers need to move beyond reward programmes that were purely monetary because travel generates “warm memories and appeal” over cash equivalents, it said.

Melissa Van Dyke, IRF president, said: “Behavioural economics gets to the heart of why people make specific choices, and it can be an effective resource in designing IRR programs that motivate employees’ best performance. By understanding the role of emotion in motivation as explained in Using Behavioural Economics Insights in Incentives, Rewards, and Recognition: A Nudge Guide, IRR professionals can use this knowledge of human drives to make work more satisfying, enjoyable, and rewarding.”

 

To download the full study, visit the IRF website here.

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