From corporate bonuses to wellness premium reductions, employers drive productive and healthy behavior with the promise of future rewards. But what if employees received their rewards up front, with the threat that the cash would be taken away if they didn’t perform to standards?
That’s the thought behind a recent experiment that tested the psychology of loss aversion to incentivize teacher improvement, in which one group was paid in advance and asked to give back the money if their students did not sufficiently improve.
