Volume 16, Issue 3 p. 46-63

The Effects of Incentives on Workplace Performance: A Meta-analytic Review of Research Studies 1

Steven J. Condly

Corresponding Author

Steven J. Condly

University of Central Florida

*The research reported in this article was partly funded by a grant from the Society of Incentive and Travel Executives (SITE) Research Foundation and sponsored by the International Society for Performance Improvement (ISPI). The opinions expressed in the review are the authors and do not necessarily reflect those of SITE or ISPI. A description of the complete study is titled Incentives, Motivation and Workplace Performance: Research and Best Practice and is available from ISPI at their web site (http:www.ispi.org). The complete study contains a report of a large scale survey of organizations who use incentive systems as well as the meta-analysis described in this article. The authors also wish to thank the three anonymous reviewers for their helpful comments and suggestions* an Assistant Professor of Educational Psychology at the University of Central Florida. Dr. Condly's research interests include the cognitive psychology of human motivation, the interaction of intelligence and motivation in human learning, and the development of support technologies for improvedlearning and performance.

Educational Studies Department, College of Education, University of Central Florida, Orlando, FL 32816–1250. E-mail:[email protected]

Department of Learning and Instruction, Rossier School of Education, University of Southern California, Los Angeles, CA 90089. E-mail:[email protected]

HSA Learning & Performance Solutions, LLC, 1520 S. Beverly Glen Blvd., #305, Los Angeles, CA 90024. E-mail:[email protected]

Search for more papers by this author
Richard E. Clark

Corresponding Author

Richard E. Clark

University of Southern California

a Professor of Educational Psychology and Technology at the University of Southern California. Dr. Clark's research applies cognitive learning and motivation theory to the development of performance improvement. His primary interest is in the design, delivery, management and evaluation of performance systems at work.

Educational Studies Department, College of Education, University of Central Florida, Orlando, FL 32816–1250. E-mail:[email protected]

Department of Learning and Instruction, Rossier School of Education, University of Southern California, Los Angeles, CA 90089. E-mail:[email protected]

HSA Learning & Performance Solutions, LLC, 1520 S. Beverly Glen Blvd., #305, Los Angeles, CA 90024. E-mail:[email protected]

Search for more papers by this author
Harold D. Stolovitch Ph.D

Corresponding Author

Harold D. Stolovitch Ph.D

HSA Learning & Performance Solutions, LLC

Emeritus Professor of Instructional and Performance Technology at Université de Montreal and Clinical Professor of Human Performance at Work, University of Southern California. He is also the Principal partner of HSA Learning & Performance Solutions, LLC. Dr. Stolovitch's primary research focus is on the design of learning and human performance support systems that result in accomplishments valued by all stakeholders.

Educational Studies Department, College of Education, University of Central Florida, Orlando, FL 32816–1250. E-mail:[email protected]

Department of Learning and Instruction, Rossier School of Education, University of Southern California, Los Angeles, CA 90089. E-mail:[email protected]

HSA Learning & Performance Solutions, LLC, 1520 S. Beverly Glen Blvd., #305, Los Angeles, CA 90024. E-mail:[email protected]

Search for more papers by this author
First published: 22 October 2008
Citations: 86

ABSTRACT

A meta-analytic review of all adequately designed field and laboratory research on the use of incentives to motivate performance is reported. Of approximately 600 studies, 45 qualified. The overall average effect of all incentive programs in all work settings and on all work tasks was a 22% gain in performance. Team-directed incentives had a markedly superior effect on performance compared to individually-directed incentives. This effect was not influenced by the location of the study (business, government, or school), the competitive structure of the incentive system (programs where only the highest performers get incentives versus programs where everyone who increased performance receives incentives), the type of study (whether the study was a laboratory experiment or a field study), or the performance outcome (quality, quantity, or both). In these studies, money was found to result in higher performance gains than non-monetary, tangible incentives (gifts, travel). More research is needed on the relative cost-benefit of cash and gift incentives, and the way different types of tangible incentives are selected. Long-term programs led to greater performance gains than shorter-term programs did, and somewhat greater performance gains were realized for manual than for cognitive work. Explanations based on cognitive psychological principles accompany each of the analyses.

The full text of this article hosted at iucr.org is unavailable due to technical difficulties.