Academic Research in Action: Mental Accounting Theory and the Efficacy of Non-Cash Rewards

January 2022 In 1999, behavioral economist Richard Thaler published his groundbreaking mental accounting theory. In it, Thaler describes how people tend to code and organize their money and expenses, in effect, putting different value on the same amounts of money depending on how they classify it (e.g, ‘fun’ money versus money to pay the bills).…

Academic Research in Action: Incentives & Rewards in Remote and Hybrid Workforce Management

Throughout their 2020 book, Lessons from the Titans, Wall Street veterans Scott Davis, Rob Wertheimer, and Carter Copeland cite incentives as one of three prime managerial levers that signal what’s important, shape employee actions and behaviors, and build the culture: “Where the top of the organization influences culture is on actions and incentive” How much…

Academic Research in Action: The Psychology of Points Reward Programs

Through much of 2021, the IRF and researchers from the University of Waterloo and the University of Central Florida collected data and conducted interviews in an exploration of the psychology behind employee points-based reward programs. These programs have proliferated inside organizations almost in tandem with their popularity in the consumer space. We analyzed survey results…

Academic Research in Action: Applying Behavioral Science & Experimentation in Reward Program Design

October 2021 Behavioral science is less a discrete arena of study, and more an interdisciplinary approach to gaining a better understanding of why people do what they do – and, by extension, how to influence their thoughts, actions, and choices. Sound familiar? While the science remains ill-defined – and, for most, a little mysterious –…

Academic Research in Action: Individual or Team-Based Incentives?

the important role incentive program designers have in helping firms reward and recognize workers in ways that lead to better-functioning teams.

Academic Research in Action: Social Exchange Theory

August 2021 Applied Social Exchange Theory in Social Recognition Program Design Social Exchange Theory (SET) evolved in the 1950s from early 20th century behaviorism and reinforcement theory – the notion that people act in response to positive stimuli or to avoid negative stimuli. SET extends positive and negative stimuli to include social recognition (good and…