Financial Motivation

What is Financial Motivation?

Financial motivation is the use of monetary incentives to encourage desired behaviors, typically in the workplace.

The Basic Idea

Did you receive a bonus this year? How about a raise? Maybe you got some stock options? Regardless of the method, one thing remains constant: our work is often rewarded with the promise of extra cash. This is called financial motivation: the use of money as an incentive to promote a certain behavior.

The equation seems like a no-brainer: more money = more motivation. While getting a bonus feels great, behavioral science argues more financial motivations aren’t always effective. In fact, they can sometimes harm employee motivation, if done incorrectly.

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The Decision Lab

The Decision Lab is a Canadian think-tank dedicated to democratizing behavioral science through research and analysis. We apply behavioral science to create social good in the public and private sectors.

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We are the leading applied research & innovation consultancy

Our insights are leveraged by the most ambitious organizations

“

I was blown away with their application and translation of behavioral science into practice. They took a very complex ecosystem and created a series of interventions using an innovative mix of the latest research and creative client co-creation. I was so impressed at the final product they created, which was hugely comprehensive despite the large scope of the client being of the world's most far-reaching and best known consumer brands. I'm excited to see what we can create together in the future.

Heather McKee

BEHAVIORAL SCIENTIST

GLOBAL COFFEEHOUSE CHAIN PROJECT

OUR CLIENT SUCCESS

$0M

Annual Revenue Increase

By launching a behavioral science practice at the core of the organization, we helped one of the largest insurers in North America realize $30M increase in annual revenue.

Increase in Monthly Users

By redesigning North America's first national digital platform for mental health, we achieved a 52% lift in monthly users and an 83% improvement on clinical assessment.

Reduction In Design Time

By designing a new process and getting buy-in from the C-Suite team, we helped one of the largest smartphone manufacturers in the world reduce software design time by 75%.

Reduction in Client Drop-Off

By implementing targeted nudges based on proactive interventions, we reduced drop-off rates for 450,000 clients belonging to USA's oldest debt consolidation organizations by 46%

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