The Review of Economics and Statistics Vol. 104 No. 4 2022
Mission and the Bottom Line: Performance Incentives in a Multigoal Organization
Abstract
We assess the role of monetary incentives in a mission-oriented organization by randomly assigning workers to one of two bonus schemes, incentivizing either the performance of a microcredit program (bottom line) or the empowerment of clients (mission). We find that the credit bonus improved credit-related outcomes but undermined the social mission, while the social bonus did not harm the bottom line. These results are consistent with a multitasking model with production spillovers or with prosocial behavior. We show that when mission-related rewards are not feasible, organizations that care about both the mission and the bottom line prefer flat wages to incentives.
- DOI
- 10.1162/rest_a_01001
- Volume
- 104
- Issue
- 4
- Pages
- 748-763
- Language
- en
- Sources
- openalex crossref