What is more important for a company’s success: having a good incentive scheme or selecting people who have the right values ?
Prof. Alexander Wagner, SFI@UZH, brought psychology to finance in his recent TEDx talk on honesty in corporations. In his research Wagner has carried out an experiment to test people’s honesty when offered an easy, anonymous financial gain. Results were surprisingly different to what one would expect. Some people have “protected values” that force them to withstand certain temptations.
What does this mean for businesses? Corporations may be more successful if they select people that have values that match the corporation’s. The mix of “the right people with the right values” plus an appropriate incentive scheme “may go a long way to saving a lot of trouble and money” for an organization, says Wagner.
View Alexander Wagner’s TEDx talk.