Workers May ‘Choke’ Under Pressure of Non-Monetary Incentives

Competition for non-monetary awards can have adverse effects on performance and may cause employees to “choke” under pressure, according to a new study by a Walton College economist.

Raja Kali, professor of economics, and colleagues at HEC Montreal, a business school in Canada, examined the performance of elite U.S. golfers between 2006 and 2012 and found that players underperformed when trying to qualify for the U.S. Ryder Cup team, which does not compensate them for participating.

The findings, published in the Journal of Economics & Management Strategy, challenge historical findings indicating that non-monetary incentives like plaques, rings and “employee-of-the-year” competitions motivate employees to perform better.

Read the entire article at Arkansas Newswire and Research Frontiers.