Effective leaders know that the best way to get buy-in for sustained organzational change is to offer incentives for achieving primary targets.
An incentive is an “Inducement or supplemental reward that serves as a motivational device for a desired action or behavior” (http://www.businessdictionary.com/definition/incentive.html). So, it is the end of summer, and graduates are starting new jobs, the children are heading back out to school, and it is back to the hustle and bustle once again. This means more ironing, more trips for work and school, more electronic devices that are powered to complete assignments, presentations, a little entertainment, and to stay in touch with family and friends. So, everyone would appreciate saving some money. Including the power company! How about a million dollars worth of incentive in an energy challenge involving competing households? Preview one power company’s energy challenge below.
JPS PowerSMART Energy Challenge [Season 3 – Ep. 1] ‘The Smart Home Edition’
Continued research based on Walter Mischel’s 1960s work on delayed gratification, shows that the value of incentives learned early in life support executive function in adult life. Evidence is provided from studies on how three types of incentive pay — performance-related pay, profit-related pay, and share ownership — might affect employee well-being.
The sample included 1,293 senior managers in human resource departments in the private-sector workplaces across the United Kingdom (Ogbonnaya, Daniels & Nielsen, 2017). It also included questionnaires distributed to a random selection of five to 20 employees in each workplace where the management interviews were conducted (13,657 employees). Analyses involved matching employees’ reports about their subjective experiences of work with data from the management interviews.
- Performance-related pay was positively associated with job satisfaction, organizational commitment, and trust in management.
- Profit-related pay produced mixed results. At low to medium levels of employee participation there were lower levels of job satisfaction, organizational commitment, and trust in management. At high levels of employee participation there were higher levels of employee well-being.
- Share ownership showed a direct negative relationship with job satisfaction. There was no significance between employees’ commitment and trust in management. There was also no significant relationships found in high employee uptake of share ownership and employee well-being.
What should managers keep in mind? The positive relationship between performance-related pay and all three well-being outcomes indicates that employees may see increases in pay as a reasonable and even positive trade-off for contributing toward organizational success.(Ogbonnaya, Daniels & Nielsen, 2017; https://hbr.org/2017/03/research-how-incentive-pay-affects-employee-engagement-satisfaction-and-trust).
Check out more incentives for life saving options at https://www.dropbox.com/s/civ6jnmfx6lsmdm/Jamaica_CC%26Water2.docx?dl=0 or explore more offerings at http://www.lulu.com/spotlight/KeishaAMitchellPhD .