Incentive compensation professionals work hard at developing incentive plans that drive employee motivation while also meeting their company’s strategic objectives. In the past, this has been achieved by using rules of thumb and stringent financial analysis.
Yet, hard work is not enough in today’s turbulent times.
Today, compensation professionals need to add a few more tools to their tool belt.
Specifically, they need to add a deeper understanding of behavioral science and communication strategy. A great incentive program can be a defining factor in an organization’s success but as the world evolves additional measures are needed to ensure that it is resonating with and being understood by the field. Adding behavioral science into the mix can significantly improve your program’s impact and the performance of your teams. Tie these principles together with award-winning communication and you have a home run.
Have you ever experienced a company with a culture so powerful that you notice it immediately? There is a positive tone in the conversation, a joyful way in which people interact, a different feeling that you get walking through the door.
Those companies are rare.
It is more likely you’ve experienced a company with a culture that is toxic. One where the tone of the conversation is so negative that it instantly brings you down, were the interactions between employees seem hostile, and where you would like to run out the door shortly after entering.
Back in September, I partnered with Tim Houlihan to start “a monthly gathering of curious minds” which we called Behavioral Grooves. We thought it would be interesting to get like-minded people together to talk about applying behavioral science to life and work.
We had no idea if others would be interested in this…
We announced the meetup and were hoping to get at least a few of the friends that we had contacted to show up. We ended up with 24 people for that first session where we talked about habits – how they are formed and what people can do to improve them.
We were thrilled!
From there, it took off. We have over 180 members signed up to our meetup group and it is growing fast. We have had three monthly sessions as of early January 2018 and our fourth is lined up for two weeks from today. We have over 20 people who have made it to two or more of the sessions.
I guess we struck a nerve.
For our second session, we invited Professor James Heyman to speak and thought, hey, since he’s here, why don’t we interview him and make a podcast out of it. Thus, our Behavioral Grooves podcast was born. Tim and I both loved that so much that we decided that we didn’t want to wait for the next Behavioral Grooves session to record our next one – so we started to invite people and interview them – both live and over the internet.
To date, we have seven interviews recorded and three more in the works. These podcasts mirror the Behavioral Grooves sessions in that they are conversational in nature where we geek out over behavioral science and how we can apply behavioral science insights into our daily work and lives.
They have been a blast!
In reflecting on this, it appears to me that these two outlets provide us with a way of both learning and sharing. We want to be advocates for good, ethical use of behavioral science. We believe that there is much to learn and we can improve our work and lives by understanding and by applying these principles in a thoughtful and deliberate manner.
We also realized that we love the community that this is creating. A community of curious minds who are interested in science and the application of that science. A community of people that we can bounce ideas off of. A community of people that can push us to think about things from new perspectives.
This is ultimately what we have been building and hope that it grows and provides a place and outlet for others, as well as ourselves.
If you are ever in Minneapolis on the third Thursday of the month – please come and join us at our meetup (find out more info here) and if you can’t make that, please listen in to our podcasts (click here to find the latest).
At the IPMI Institute HR conference in Miami we sat down with 10 HR executives from various industries and exchanged insights. We discussed what was going on in their world and how behavioral science can help the HR community.
We noticed three overarching themes:
Organizations are finding cultural change hard
Organizations have not had significant success at engaging their employees
Organizations don’t have the bandwidth to prioritize employee communications—although they know doing so is important
Back in January we introduced you to the concept of integrating Behavioral Science into Graphic Design. If you did not have a chance to read it, or for a recap, click here.
Today we will expand a bit more on the idea of “cognitive load”. Not only is cognitive load a valuable resource to utilize in graphic design; but it is also extremely valuable in communications, speaking engagements, presentation’s and an all-around useful tool for increasing the understanding of any subject.
Over the past few years, we have seen a shift in how organizations value their internal communications. In the past, employee focused communications were often an afterthought. Companies would spend significant time, effort and money on developing out their incentive plans, making sure they were designed to drive the right behaviors and performance, only to communicate it to the field in an e-mail with a 30-page, single-spaced legal contract attached.
As part of our exhibit booth at the World at Work 2016 Total Rewards Conference, we designed a method for giving away our promotional t-shirts that simultaneously acted as an experiment to help us understand what motivates people.
What we found out was intriguing and reinforces some key behavioral insights about intrinsic and extrinsic motivation, recognizing accomplishments and having specific goals.
Our process involved a stationary bike that was hooked up to a bank of LED lights1 – the faster and longer you peddled, the more lights lit up, sounds basic enough right?
The six LED light panels set up on a vertical pole that lit up from the bottom to the top – once all six lights were lit up, all the lights flashed and the process was over.
We set our process up a little differently
To earn a very cool“Behavior Matters” t-shirt, all people needed to do was get on the bike and light up one of the lights.
We did not require that people light all six lights, and we did not assign a time length for peddling to earn a t-shirt. All they had to do was light up one light – a relatively easy process.
Additionally, people could get their name written on our leader board if they were one of the five fastest people to light up all the lights. This white board with hand written names on it was updated whenever someone earned one of the top five spots.
Our original concept was to have people read one of two sets of written rules – one positive and encouraging; the other bland and discouraging. The intent was to see if the different messages impacted how people performed or felt about the activity. We quickly realized that our original plans were not working – too many people wanted to ride the bike and the process ended up being us telling participants the rules instead of them reading them thus invalidating the initial study.
Luckily for us, this is where things got interesting!
While the original communication experiment didn’t pan out, we were still able to gather very interesting findings. Specifically we were intrigued by some of the insights we gained into extrinsic and intrinsic motivation, the power of leader boards, and the impact that specific goals have on performance. First, let’s look at the overall results:
A total of 103 people rode the bike over the two days the exhibit hall was open (some participants rode multiple times). Their performance is shown in table below.
Highest number of lights lit up
# of people achieving level
% of people achieving level
Average time to reach level
The average ride time was 31.7 seconds – with the fastest time being 4.8 seconds and the longest time being 80 seconds. There is some obvious differences based on physical fitness here as shown by the inverse time required to reach the different levels of lights (i.e., more time on average to reach 3 lights than 4 lights, etc.) which played out in how well people did.
Do you just want a shirt or are you looking for something more?
We needed to have an incentive to get most people on the bike. True, there were some who just wanted to get on the bike and see how many lights they could get, but the vast majority of the people got on the bike to earn the t-shirt. In other words, they needed an extrinsic reward to participate.
But that’s not the interesting part…
The interesting part was that only one person stopped at the first light (1 out of 103, that’s less than 1%)! Once they were on, the majority of participants moved past the threshold for earning a t-shirt and continued peddling to see what they could do. This was not easy – we had the settings on the bike be rather hard. This meant that peddling for more than 15 seconds was difficult for most non-athletes.
We believe once they started the activity, they intrinsic motivation of the bike kicked in. The lights tracked their progress immediately and they could directly see how they were doing against the goal. They wanted to see what they could accomplish. They no longer worried about the t-shirt – but instead, focused on the event.
In other words, they challenged themselves to see how many lights could they light up?
They had already committed to participate in order to acquire a t-shirt (the reward) – now they were pushing beyond what was required for the shirt because of the challenge that they were presented with. If we think about the 4-Drive Model of Employee Motivation (for more info see here, here, here) we see that the Acquire component was instrumental in the motivation to initiate the event, but the ongoing motivation was propelled by the intrinsic drive to Challenge oneself and see how they could do.
The idea of using an extrinsic motivator to entice people to participate in programs or activities that they are not excited about and then allowing their natural Challenge drive take-over should not be undervalued. Additionally, the more that a program uses a measure of goal progression, highlighting an individual’s progress, the more a participants Challenge drive is activated. In other words, the design of your extrinsic incentive program can impact the intrinsic motivation that is activated. Finding cohesion between these extrinsic and intrinsic motivators can certainly help drive the right behaviors.
What’s up with the leader board?
We had a leader board where riders got their name featured if they were one of the five fastest people to light up all six lights. They did not earn any additional extrinsic reward for being on the leader board – no fancy give-away, no grand prize, not even an extra t-shirt.
Please join us in welcoming Tim Holdgrafer to The Lantern Group team. Tim joined the team last month as our sales director in the Midwest region. He will be responsible for managing all of our new sales for our Motivation, Team and Workshop solutions.
He brings over 20 years of experience in delivering financial services and business solutions to a wide range of clients from large multinational companies to local start-ups and entrepreneurs.
Tim has a passion for driving change within an organization.
Additionally, Tim is an experienced facilitator having worked with The Lantern Group since 2014 helping deliver some of our most exciting and challenging team building programs.
Tim earned his bachelor’s degree from the University of Minnesota – Carlson School of Management and is a long suffering Gopher football fan. In his spare time he enjoys staying active through running, softball, golf and playing hockey every sunday night. He uses his team building and leadership experience to help his coaching of youth soccer and hockey in Minneapolis as well as being the Cubmaster for over 90 young boys. When he has some downtime, he also enjoys reading and researching genealogy. Tim is married and has three fantastic boys.
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