Evaluation
Understanding workplace incentives and the motivations of workers is important for increasing workplace productivity and organizational efficiency. Many have suggested that employees are altruistic, willing to work harder when they believe that the amount of effort they exert in their job directly translates into value for their organization. Researchers conducted a randomized evaluation to measure the impact of different employee and employer payoffs on the productivity of workers hired to stuff envelopes for either one of several charities or for a grocery store. The results indicate that employees were more productive when compensated, in part, for the number of envelopes they completed. Furthermore, workers were more likely to exert effort when their work was of value to their employer but did not increase their effort when the value to their employer was greater. Workers did not change their effort in response to receiving a surprise increase or decrease in pay.