| From the Editor's Desk
How Your Bonus Affects Your Colleagues Behaviour When organisations change how they compensate employees, they are embarking on a social experiment, whether decision-makers know it or not. The trouble is the vast majority of these experiments are conducted unscientifically, yielding results that can be misleading or inconclusive.
The popularity of performance-related pay for individuals obviously reflects the belief that employees will work harder when doing so promises to benefit them financially. But managers often gloss over the deeper hypothesis behind pay-for-performance schemes, which is that people primarily care about how much they themselves are paid as individuals. An opposing school of thought in academic literature contends that incentives can have social effects too – where the individuals care not only about what they receive but also about what others in the social group around them receive. The latter viewpoint, if true, implies a central role for incentives in shaping and leveraging value-creating social effects. But it is difficult, if not impossible, to say whether individual or social effects would be more salient in a given context without being able to launch a real-world study under conditions that meet standards for scientific rigour. And it very rarely happens that incentive schemes are altered through random assignment in a way that allows for causal analysis comparing actual performance against expectations drawn from individual and social effects theories.
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WorkPutin's supporters call for the liquidation of Ukraine as 'genocidal rhetoric' swellsProminent supporters of Russian President Vladimir Putin are using increasingly "genocidal rhetoric" when discussing and demonizing Ukraine, analysts note.
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WorkYandex, Russia's "Google", wants to flee the country© 2022 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions.
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