Extrinsic Incentives Can Increase Productivity by 49%

Extrinsic incentives have been shown to have a huge impact. For example, meta-analyses found that they can increase productivity by as much as 49%. The first step in designing an incentive plan is figuring out what success looks like. Success would look like each of our salespeople increasing their sales by 15% over the next quarter. And success for our manager looks like a similar increase in overall sales.