Meaningful Work Increases Performance More than Money

Rewards, even monetary ones, don't result in increased performance as much as doing work that matters. That's what a recent study by the World Economic Forum reveals.

World Economic Forum conducted a 2016 study of 400 workers to determine how performance is affected by perceived meaningfulness of work and by other incentives.  They looked to answering two questions:  Do people perform better when they believe their work is important?  Also, do workers perform better if they are rewarded?

The Forum admittedly “manipulated the meaning of work” in a field experiment.  In the high-meaning condition, workers were told that their work, which consisted of entering data into an electronic database, was of great importance for a research project. In the low-meaning condition, workers were told that their work was merely a routine quality check that most likely would never be used.  They also offered different forms of non-monetary or monetary incentives to examine how performance changed. They paid workers a fixed wage, a fixed wage plus a bonus for every data entry or a fixed wage plus a symbolic award, like a trophy. 

Those who received monetary incentives (a bonus for each data entry) had 6% higher productivity rates than those who received nothing or received a symbolic award.  Thiis group was told nothing about the meaningfulness of their work.

For the group of workers who were told their work was not meaningful, rewards has a significant positive effect on performance.  These workers, doing work that didn’t matter, were 18% more productive when they were rewarded.  Further analysis revealed that workers were demotivated by the unimportant work, but could be re-motivated by incentives of any kind – monetary or symbolic.   In contrast, when the worth of their work was perceived as high, the recognition didn’t impact performance at all.  In the latter case, they were already giving their best because they believed in what they were doing. 

Overall, the studies revealed that monetary rewards can indeed result in increased performance.  People want to be well compensated for their work.  And, if they know they will be paid more for doing more, they tend to do more. This really isn’t a new concept – pay people to perform and they will perform. Here is the evidence that today's business leader can leverage.  Even when we don’t have anything ‘extra’ to offer our workforce as a reward, they appreciate knowing how their work will contribute to the overall success of the business or how their deliverables will be utilized.  When they have a sense of worth and value, they will still do more -- in this study workers increased their productivity three times as much (6% versus 18%)  when they felt work was valuable.  

So when your budget gets cut and you can no longer offer gift certificates, free vacations, quarterly bonuses, or pay increases for top performers, don't fret.  Simply make sure you communicate the value of the work to the people doing the work.  This could encourage higher productive even more than money alone.

It's June! Join the club!

June is JOIN THE CLUB month.  Summer is an ideal time to explore new social, business, and charity affiliations. This time of year, there are more networking events, social activities and after-five gatherings than at any other time.  It's time to get out there and get connected!

Social media -- LinkedIn, Facebook, and Twitter -- are good sources of information about groups that might be of interest.  Also, good old-fashioned word-of-mouth, could direct you to an like-minded partnership.  Before you join, sign up for their newsletters and announcements.  This will keep you abreast of activities, meetings, and other opportunities.   Attend a couple of meetings before paying those membership fees, also; get a feel for what you’re getting, before you make a financial investment.

Once you’ve identified a group you would like to explore, think about getting deeply involved.  There’s only so much you can gain when you limit yourself to showing up, hearing a speaker, and leaving.  Get engaged by joining a committee; this will expose you to deeper interactions with members.  Committee involvement also gives you a chance to learn how a group functions and what it values.  If you’re looking for a less daunting commitment, consider volunteering to host/sponsor an event or offer to help with meeting administration. 

Many organizations also have special interest groups which appeal to those who are find larger crowds too impersonal.  A special interest group (SIG) is a subset of a larger group that is divided by geography, special preference or affinity.   For example, if you live in Murfreesboro, a Rutherford County SIG could be right for you. CEOs, may want to look for Executives SIGs to connect with other high-ranking officials.  Similar networks exist within any companies these days. Like SIGs, corporate affinity groups appeal to those with particular interests or commonalities.  Many large businesses have groups geared toward veterans, the LGBTQ community, ethnic groups, and generational alliances. 

If you are already a member of an organization or two, now’s the time to assess its value.   Are you getting what you expect from it?  Does involvement in the group continue to be worth your time, energy and money?  My peer-coach advises me that any business arrangement should have at least two benefits.  For example, it might provide access to cutting-edge information and a platform to promote products.  Or, it could offer continuing education credits, and mentoring.  Whatever the benefits; there should be more than one.  Whether you’re looking to serve, network, build relationships, grow your business, or make career moves, a little research can connect you with a group that is a good fit for you.  Happy hunting!