Encouraging Innovation in Public Sector Employees: The Role of Financial Incentives on Creative Tasks?

by Joe Gladstone

Joe asks what are the primary levers available to encourage innovative ideas and behaviours from public sector employees? To answer this, he outlines evidence from behavioural science which suggests that to encourage innovative and creative performance managers must look beyond financial incentives, as monetary rewards may in fact have a negative impact on innovative and creative behaviours. Joe draws upon evidence from psychologists and neuroscientists, and argues that classical economic principles of reward through financial incentives break down when dealing with more complex and creative tasks.

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