...Ridiculous Ep. 5: The Future
Behavioral Grooves Podcast
Productivity Incentives and Self-control
Setting up a data entry firm in India taught that productivity is a self-control game where focus and avoiding distractions lead to more work completed and higher earnings. Employers can enhance productivity by offering incentives for reaching output goals without necessarily increasing pay. A study showed that workers responded well to a unique incentive structure where they could set a goal for completing a certain number of data entries, with the option of earning standard pay or risking a pay cut if they did not meet the goal. Surprisingly, even though the rational choice would be to maintain the status quo, 30% of workers opted for the higher risk option repeatedly, highlighting the complexity of human behavior.
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