The impact of financial and nonfinancial incentives on business-unit outcomes over time

J Appl Psychol. 2006 Jan;91(1):156-65. doi: 10.1037/0021-9010.91.1.156.

Abstract

Unlike previous behavior management research, this study used a quasi-experimental, control group design to examine the impact of financial and nonfinancial incentives on business-unit (21 stores in a fast-food franchise corporation) outcomes (profit, customer service, and employee turnover) over time. The results showed that both types of incentives had a significant impact on all measured outcomes. The financial incentive initially had a greater effect on all 3 outcomes, but over time, the financial and nonfinancial incentives had an equally significant impact except in terms of employee turnover.

MeSH terms

  • Adolescent
  • Adult
  • Economics
  • Efficiency, Organizational*
  • Female
  • Food Industry
  • Humans
  • Male
  • Middle Aged
  • Motivation*
  • Personnel Turnover
  • Time Factors