Bruno Pierre Gebarski's List: E20: Incentives

• When it comes to creating motivation in the workplace, leaders consistently underuse social norms to shape behavior. Social norms are not only cheaper and more practical but often more effective. The American Association of Retired Persons once asked some lawyers if they would offer their services to needy retirees at a cut-rate price of around $30 an hour. The lawyers declined. Then the AARP asked if they would offer their services for free. Most of the lawyers agreed. When compensation was mentioned, the lawyers applied market norms and found the offer lacking. When no compensation was mentioned, they used social norms and were willing to volunteer their time.
• social contracts are invoked by recognition by peers and superiors.
• "Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They're absolutely free — and worth a fortune."

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