To Find the Best Incentives for Employees, Start with a Simple A/B Test - Deepstash

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To Find the Best Incentives for Employees, Start with a Simple A/B Test

insight.kellogg.northwestern.edu

Using A/B testing for employee incentives

Marketers use A/B tests to set different call-to-action messages against another or find which of two messages will cause the most sales on an e-commerce site.

Managers can also use A/B tests for other things, such as designing the best way to motivate employees. A single A/B test can

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Organisations use a wide range of incentive schemes to motivate their employees: Some schemes are basic such as a base salary and a bonus if specific targets are reached. Other schemes are more complex. All involve critical decisions with critical trade-offs. 

One of the only ways for manag...

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Researchers found that using previously published productivity data can predict how employees perform under another entirely different incentive scheme.

Researchers also used actual productivity data to test their model's ability to design a better contract...

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The data from an A/B test to create an incentive scheme is close to optimal.

The A/B testing framework doesn't require the employer to understand in advance anything about their employees' preferences, such as a dislike for working at a faster pace. They also don't need to ...

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