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  • 2013
  • Working Paper
  • HBS Working Paper Series

Prosocial Bonuses Increase Employee Satisfaction and Team Performance

By: Lalin Anik, Lara B. Aknin, Michael I. Norton, Elizabeth W. Dunn and Jordi Quoidbach
  • Format:Print
  • | Language:English
  • | Pages:33
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Abstract

In two field studies, we explore the impact of providing employees and teammates with prosocial bonuses, a novel type of bonus spent on others rather than on oneself. In Experiment 1, we show that prosocial bonuses in the form of donations to charity lead to happier and more satisfied employees at an Australian bank. In Experiment 2, we show that prosocial bonuses in the form of expenditures on teammates lead to better performance in both pharmaceutical sales teams in Belgium and sports teams in Canada. These results suggest that a minor adjustment to employee bonuses—shifting the focus from the self to others—can produce measurable benefits for employees and organizations.

Keywords

Satisfaction; Groups And Teams; Performance; Compensation And Benefits; Philanthropy And Charitable Giving; Banking Industry; Sports Industry; Pharmaceutical Industry; Canada; Belgium; Australia

Citation

Anik, Lalin, Lara B. Aknin, Michael I. Norton, Elizabeth W. Dunn, and Jordi Quoidbach. "Prosocial Bonuses Increase Employee Satisfaction and Team Performance." Harvard Business School Working Paper, No. 13-095, May 2013.
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About The Author

Michael I. Norton

Negotiation, Organizations & Markets
→More Publications

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    'Repayment-by-Purchase' Helps Consumers to Reduce Credit Card Debt

    By: Grant E. Donnelly, Cait Lamberton, Stephen Bush, Zoe Chance and Michael I. Norton
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    Work Values Shape the Relationship Between Stress and (Un)Happiness

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    Consumers Punish Firms that Cut Employee Pay in Response to COVID-19

    By: Bhavya Mohan, Serena Hagerty and Michael Norton
More from the Authors
  • 'Repayment-by-Purchase' Helps Consumers to Reduce Credit Card Debt By: Grant E. Donnelly, Cait Lamberton, Stephen Bush, Zoe Chance and Michael I. Norton
  • Work Values Shape the Relationship Between Stress and (Un)Happiness By: George Ward, Hanne Collins, Michael I. Norton and Ashley V. Whillans
  • Consumers Punish Firms that Cut Employee Pay in Response to COVID-19 By: Bhavya Mohan, Serena Hagerty and Michael Norton
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