A Field Experiment in Motivating Employee Ideas

A-Tier
Journal: Review of Economics and Statistics
Year: 2017
Volume: 99
Issue: 4
Pages: 577-590

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study a field experiment at a large technology company. Employees were encouraged to submit ideas on process and product improvements. The company randomly assigned nineteen teams into treatment and control groups. Treatment team employees received rewards if their ideas were approved. Nothing changed for control team employees. Our main finding is that rewards substantially increased the quality of ideas. Rewards increased participation in the suggestion system but decreased ideas per participating employee, with no net effect on the quantity of ideas. Broader participation persisted after the reward was discontinued, suggesting habituation. We find no evidence for motivational crowding out.

Technical Details

RePEc Handle
repec:tpr:restat:v:99:y:2017:i:4:p:577-590
Journal Field
General
Author Count
3
Added to Database
2026-01-25