| My study investigates whether the effects of non-cash incentives on employee performance depend on when the incentive is paid and what type of task is being performed. Although firms frequently use non-cash incentives, such as merchandise, travel awards and gift cards, the effects of non-cash incentives, relative to cash incentives, are not well understood by researchers. Drawing on economic and psychology theories, I predict that the effects of incentive type (cash or non-cash) on performance depend on incentive payoff timing (near or distant future) and task type (analytic or creative). Specifically, for an analytic task, I predict and find that a cash incentive paid in the near future is most effective. For a creative task, I predict and find that a cash incentive paid in the near future and a non-cash incentive paid in the distant future are most effective. The results of my study should benefit theory and practice by identifying the most effective combination of incentive type and payoff timing for a given task type. |
