Team bonuses don’t work
The team bonus has been used many times to improve the performance of employees. But does it actually work? No, according to new research from Erasmus University Rotterdam. The research was conducted by Robert Dur, Professor of Incentives and Performance at Erasmus School of Economics, Josse Delfgaauw, Associate Professor at Erasmus School of Economics, and Michiel Souverijn, PhD candidate.
The researchers from Erasmus University Rotterdam carried out the research at a large Dutch clothing chain with about 100 branches. At 60 of these stores, employees received a team bonus. The stores that did not participate acted as a control group. ‘What happened through the experiment? Nothing. The sales figures remained the same despite the introduction of the bonus,’ says Professor Robert Dur.