Incentives and work productivity

Framing Effect and Employment and Work Performance
Intervention Employment and Work Performance

Framing and productivity boost, a definite correlation?

Intervention Description

In an attempt to increase workplace productivity, the effect of framing incentives differently was examined. In a factory setting, framing a conditional incentive (such as a bonus) as a loss or gain led to increased productivity of about 1%. Although framing incentives as losses or gains both increased productivity, framing incentives as losses increased productivity to a greater degree.

Sources

Hossain & List (2009), The Behavioralist Visits the Factory: Increasing Productivity Using Simple Framing Manipulations, NBER Working Paper

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