Leadership strategies to enhance creativity and innovation in the workplace Thomas Curran Research Fellow in Sport, Exercise and Well- being University of Gloucestershire

The candle problem

Research Arley, Gneezy, Loewenstien & Mazar (2005). Federal reserve bank commissioned research.

More evidence: This time from the UK An analysis of 51 separate experimental studies of financial incentives in employment relations found overwhelming evidence that these incentives may reduce an employee's natural inclination to complete a task and derive pleasure from doing so. 'We find that financial incentives may indeed reduce intrinsic motivation and diminish ethical or other reasons for complying with workplace social norms such as fairness. As a consequence, the provision of incentives can result in a negative impact on overall performance,' said Dr Bernd Irlenbusch from the LSE's Department of Management.

Rewards Dull thinking Stifle motivation Reduce performance

Problem There is a disconnect between the evidence and the practice.

A whole new approach Built around intrinsic motivation If you want compliance then try to motivate employees. If you want engagement then create the conditions in which employees can motivate themselves

Autonomy

Evidence

To wrap up 1)Rewards only work in narrow circumstances 2)Contingent rewards stifle creativity 3)Secret to high performance and engagement isn't rewards but intrinsic motivation