Employees are motivated by giving as well as getting.
How do we make life meaningful? That question is at the core of a growing multidisciplinary movement focused on empathy, compassion, gratitude, and how to invite them into our daily lives. At the close of 2013, a crew at Greater Good—the online magazine of UC Berkeley’s Greater Good Science Center—culled and summarized the findings of ten notable happiness studies published last year. “The Top 10 Insights from the ‘Science of a Meaningful Life’ in 2013” originally appeared at Greater Good. This is part eight of ten (part seven).
Over the past two decades, work satisfaction has declined, while time spent at work has significantly increased. Not a good combination!
Would paying people more money help? Some studies have shown that rewarding employees for their hard work and late nights at the office with a bonus will make things a little better and quiet dissatisfaction. But in September, through the collaborative research of Lalin Anik, Lara B. Aknin, Michael I. Norton, Elizabeth W. Dunn, and Jordi Quoidbach, we learned that employee bonuses might have the most positive effects when they’re spent on others. The researchers suggested an alternative bonus offer that has the potential to provide some of the same benefits as team-based compensation—increased social support, cohesion, and performance—while carrying fewer drawbacks.
Their first experiment focused on broad, self-reported measures of the impact of prosocial bonuses on an employee’s job satisfaction. They were either given a bonus to spend on charity or were not given a bonus at all. Those who gave to charities reported increased happiness and job satisfaction. The second experiment was conducted in two parts—both focused on “sports team orientation” by looking at the difference between donating to a charity or a fellow employee—and attempted to see if these improved actual performance. In the first part of the experiment, these participants were given $20 and told to spend it on a teammate or on themselves over the course of the week. In the second part of this experiment, they were instructed to spend $22 on themselves or on a specified teammate over the course of the week. Both of these experiments found more positive effects for givers than those who spent the $22 on themselves.
This collaborative research indicates that prosocial bonuses can benefit both individuals and teams, on both psychological and “bottom line” indicators, in both the short and long-term. So when you receive your bonus this year, you might want to think twice before buying those pair of shoes you’ve been dying for, instead consider spending it on someone else—because, according to this research, you’ll probably be much happier and more satisfied with your job.