Firms rely on compensation mechanisms to fully motivate their employees. A major management challenge is to identify which compensation system may be best suited for a given employee or team based on their role(s) within the firm. We present a brief overview of current research on individual and group incentives and discuss how these may be affected by risk preferences. Using field data and laboratory studies, the effectiveness of a compensation program may be quantified and tested in relation to alternatives. The findings are both informative and non-obvious, and help shed light on how firms may organize their incentive compensation systems.
John Hamman is an Assistant Professor of economics at Florida State University with a Ph.D. from Carnegie Mellon University. His research utilizes laboratory experiments to study individual and group decision making, with an emphasis on organizational behavior. His research has been published in the American Economic Review, the American Journal of Political Science, Experimental Economics, and discussed in Forbes Magazine.
Sebastian J. Goerg is an Assistant Professor of economics at Florida State University with a Ph.D. from Bonn University in Germany. In his research he investigates how information, incentives and institutions influence human behavior. His work has been published in a variety of academic journals among them the Journal of Labor Economics, Games and Economic Behavior, the Journal of Economic Psychology, and Experimental Economics.
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Executive & Program Committees