Fairer reward systems and improved team dynamics: Key insights from new research

Thursday, May 16, 2024
Kelsey Matthews

By Rachel Doherty

A recent study conducted by researchers from the University of Waterloo and Wilfrid Laurier University offers crucial insights into creating fairer employee reward systems and enhancing team dynamics.

The study highlights a tendency among less skilled employees to overstate their contributions and demand higher bonuses when reporting performance voluntarily. This behavior often leads to decreased effort and a lack of concern for fairness, negatively impacting overall team dynamics. The researchers found that requiring employees to explain their contributions fosters honesty and diligence, aiding managers in making more equitable bonus allocation decisions. 

SAF Professor Kelsey Matthews, a co-author of the study, emphasizes the importance of mandatory explanations to mitigate self-interested biases among team members, particularly those with lower abilities.