The Most Powerful Workplace Motivator
The Most Powerful Workplace Motivator
Published: October 31, 2011
Author: Carmen Nobel
Executive Summary:
When evaluating compensation issues, economists often assume that both an employer and an employee make rational, albeit self-interested choices while working toward a goal. The problem, says Assistant Professor Ian Larkin, is that the most powerful workplace motivator is our natural tendency to measure our own performance against the performance of others. Key concepts include:
• The most powerful workplace motivator is our natural tendency to measure our own performance against the performance of others.
• Salespeople will actually give up the chance to make extra money if doing so will garner positive recognition from their peers.
• In the age of social networking, employees are more likely than ever to share salary information with each other. Employers need to keep this fact in mind when designing compensation plans.
About Faculty in this Article:
Ian I. Larkin is an assistant professor in the Negotiation, Organizations and Markets unit at Harvard Business School.
• More Working Knowledge from Ian I. Larkin
• Ian I. Larkin - Faculty Research Page
Any parent can tell you that a surefire way to turn joy into rage is to offer your child a big candy bar—and then turn around and offer an even bigger one to his sister. Suddenly, a special treat turns into a great injustice. "Hey! How come she got more? That's not fair!"
And any hiring manager can tell you that the world of business is not so different.
"It really was all about the recognition of and comparison with their peers, and many of them were willing to pay for it."
"This is why MBA programs send out lists of average salaries, and why students spend hours poring over those lists," says Ian Larkin, an assistant professor in the Negotiation, Organizations & Markets Unit at Harvard Business School. "You should see the angry e-mails I get from students when they find out that a job offer
Published: October 31, 2011
Author: Carmen Nobel
Executive Summary:
When evaluating compensation issues, economists often assume that both an employer and an employee make rational, albeit self-interested choices while working toward a goal. The problem, says Assistant Professor Ian Larkin, is that the most powerful workplace motivator is our natural tendency to measure our own performance against the performance of others. Key concepts include:
• The most powerful workplace motivator is our natural tendency to measure our own performance against the performance of others.
• Salespeople will actually give up the chance to make extra money if doing so will garner positive recognition from their peers.
• In the age of social networking, employees are more likely than ever to share salary information with each other. Employers need to keep this fact in mind when designing compensation plans.
About Faculty in this Article:
Ian I. Larkin is an assistant professor in the Negotiation, Organizations and Markets unit at Harvard Business School.
• More Working Knowledge from Ian I. Larkin
• Ian I. Larkin - Faculty Research Page
Any parent can tell you that a surefire way to turn joy into rage is to offer your child a big candy bar—and then turn around and offer an even bigger one to his sister. Suddenly, a special treat turns into a great injustice. "Hey! How come she got more? That's not fair!"
And any hiring manager can tell you that the world of business is not so different.
"It really was all about the recognition of and comparison with their peers, and many of them were willing to pay for it."
"This is why MBA programs send out lists of average salaries, and why students spend hours poring over those lists," says Ian Larkin, an assistant professor in the Negotiation, Organizations & Markets Unit at Harvard Business School. "You should see the angry e-mails I get from students when they find out that a job offer