Blog

Science of Incentives

I love it when you throw out a question and the universe delivers the response at a later date and context. 

At a recent BOE meeting I asked, “is there any data to substantiate the effectiveness of financial incentives for teacher/principal performance?” The general response I received at that time was that there was no reliable data available because it was a new model of accountability.

A few days later, I was taking a break from a large project and thought I would treat myself to a Ted Talk quickie.  I clicked on Dan Pink simply because the freshness of his name.  And low and behold my question was answered:  Financial incentives work with purely mechanical tasks, but result in negative impacts on performance when the tasks involve the use of rudimentary cognitive skills, problem-solving and creativity. 

Mr. Pink cites 40 years of testing, verification by economists at MIT, Carnegie Mellon, and London School of Economics, studies funded by the Federal Reserve Bank of the United States, to support the conclusion that higher extrinsic incentives led to worse performance in executing 21^st century tasks.  if you're a visual learner like me, check out the RSA Animate version.

The second half of Mr. Pink’s “talk” focuses on a new intrinsic motivational approach involving autonomy, mastery and purpose.  Interestingly these also happen to be the same building blocks we rely on in high performing educational leaders.  Hmmm…..