Use Rewards Effectively to Boost Creativity

Summary: Offering a range of rewards for people to choose from helps to boost creativity, especially within the workforce, a new study reports.

Source: Rice University

To boost employees’ creativity, managers should consider offering a set of rewards for them to choose from, according to a new study by management experts at Rice University, Tulane University, the University of North Carolina at Greensboro and National Taiwan Normal University.

The study, co-authored by Jing Zhou, the Mary Gibbs Jones Professor of Management and Psychology at Rice’s Jones Graduate School of Business, is the first to systematically examine the effects of reward choice in a field experiment, which was conducted in the context of an organizationwide suggestion program.

An advance copy of the paper is published online in the Journal of Applied Psychology.

“Organizations spend a lot of resources and exert a great deal of effort in designing incentive schemes that reward the employees who exhibit creativity at work,” Zhou said.

“Our results showed that the effort may be a bit misplaced. Instead of discovering one reward type that is particularly effective at promoting creativity, what is more effective is to provide the employees with the opportunity to choose from several reward types, if they submit one or more ideas that are among the top 20% most creative ones.”

Workers in the study were given a range of options: a financial reward for the individual employee or their team, a self-discretionary reward such as getting priority to select days off, or a donation the company made to a charity selected by the employee. Those choices had positive, significant effects on the number of creative ideas employees generated and the creativity level of those ideas, Zhou and her co-authors found.

This shows a light bulb
Those choices had positive, significant effects on the number of creative ideas employees generated and the creativity level of those ideas, Zhou and her co-authors found. Image is in the public domain

The researchers arrived at their findings by conducting a quasi-experiment at a company in Taiwan over the course of several months. Then they conducted a second experimental study that included employees from 12 organizations in Taiwan to replicate the first study’s results and compared the results with a control group.

The studies also found that rewards aimed at helping others, such as making a donation to a charity, might be especially powerful. But for less-creative employees, alternative rewards that benefit those in need might actually lower creativity and should be avoided, the authors said.

The researchers also found that the choice of rewards fostered creativity by raising the employees’ belief in their ability to be creative. Alternative rewards also had a powerful impact on boosting the creativity of employees who earlier had scored high on an assessment of creative personality characteristics.

Zhou co-authored the paper with Greg Oldham of Tulane, Aichia Chuang of the University of North Carolina at Greensboro and Ryan Shuwei Hsu of National Taiwan Normal University.

About this creativity research news

Source: Rice University
Contact: Jeff Falk – Rice University
Image: The image is in the public domain

Original Research: The findings will appear in Journal of Applied Psychology

Join our Newsletter
I agree to have my personal information transferred to AWeber for Neuroscience Newsletter ( more information )
Sign up to receive our recent neuroscience headlines and summaries sent to your email once a day, totally free.
We hate spam and only use your email to contact you about newsletters. You can cancel your subscription any time.