What Would You Prefer, A Bonus Or A Raise? A Study Points To The Better Incentive

Nov 20, 2013

Credit dantegeek via Flickr Creative Commons

Do employees work harder when they are paid more?

A new study out of Harvard set out to answer that question and came away with some interesting conclusions. One, that employers should consider not just what they pay workers, but how. Offering cash bonuses increases employee productivity more than raises in  salaries, even if the amount of bump is exactly the same.   

Duncan Gilchrist is Ph.D. student studying business economics at Harvard, and one of the authors of the study. 

We also asked you, our listeners, to answer the question: Which would YOU prefer, a bonus, or a raise?