Teaching Note for HBS No. 918-036.
Citation:
Schwartzstein, Joshua, and John Beshears. "GiveDirectly." Harvard Business School Teaching Note 918-040, March 2018. View Details|
Case HBS Case Collection March 2018 GiveDirectly |
Abstract
How should nonprofits design compensation systems to attract and retain talent? GiveDirectly is a respected charitable organization with an unconventional approach. Instead of spending on traditional aid programs in areas such as health care and food access in developing countries, GiveDirectly transfers cash directly to the poor. As experiments have shown this approach to be an effective and efficient way to improve recipients’ life satisfaction, the organization has attracted considerable attention among donors and the media. Now, GiveDirectly is looking to grow, and it is contemplating how best to recruit talented employees and keep them motivated. In addition to offering salaries competitive with the private sector, GiveDirectly is considering linking employee compensation to organizational goals regarding the amount of cash transferred—an unusual strategy for a nonprofit.
Keywords: nonprofits; charity; effective altruism; international aid; compensation; goals; bonuses; incentives; GiveDirectly; Compensation and Benefits; Motivation and Incentives; Goals and Objectives; Recruitment; Philanthropy and Charitable Giving;
Citation:
Beshears, John, Joshua Schwartzstein, Tiffany Y. Chang, and Brian J. Hall. "GiveDirectly." Harvard Business School Case 918-036, March 2018.
