Influencing Workplace Productivity

Performance rankings are a very common workplace management practice. Behavioural theories suggest that providing performance rankings to employees, even without pecuniary consequences, may directly shape effort due to the rank's effect on self-image. But, in a three-year randomized control trial, Iwan Barankay discovered that removing rank feedback actually increases sales performance. In other studies, he has investigated the effect of social connections between workers and managers on productivity in the workplace. He has also examined whether workers' behaviour is affected by the presence of those they are socially tied to. His findings here suggest that firms can exploit social incentives as an alternative to monetary incentives to motivate workers.

Mr Barankay’s research interests are in personnel economics, behavioural economics, field experiments and political economy. He focuses on monetary and non-monetary incentives to shape individual level productivity both in the workplace and as a method to improve health behaviour. While visiting CES, Mr Barankay will discuss some of his research findings at a Hans Möller Seminar on July 8.

Iwan Barankay is Associate Professor at the Wharton School of the University of Pennsylvania, having previously taught at Essex University and the University of Warwick. His MSc and PhD are both from the University of Warwick. He serves as a consultant on workplace incentives for a broad range of industries.