Abstract
This study shows that monetary incentives together with performance disclosures
lead to significant increases in effort and productivity in the multi-branch banking
industry. Our results are based on an incentivized credit card campaign run by a
commercial bank in which employees were paid a piece-rate if they sold a credit
card to a customer. Later in the campaign, the head office started to provide daily
performance reports for all branches of the bank. The campaign ultimately resulted
in a significant 12.5% increase in the average daily productivity of branch staff and
productivity changes found were heterogeneous across different branches.
lead to significant increases in effort and productivity in the multi-branch banking
industry. Our results are based on an incentivized credit card campaign run by a
commercial bank in which employees were paid a piece-rate if they sold a credit
card to a customer. Later in the campaign, the head office started to provide daily
performance reports for all branches of the bank. The campaign ultimately resulted
in a significant 12.5% increase in the average daily productivity of branch staff and
productivity changes found were heterogeneous across different branches.
| Original language | English |
|---|---|
| Pages (from-to) | 259–284 |
| Number of pages | 26 |
| Journal | Journal of Financial Services Research |
| Volume | 61 |
| Early online date | 2 Sept 2021 |
| DOIs | |
| Publication status | Published - 1 Apr 2022 |
Keywords
- Incentives
- piece-rate
- performance disclosure
- productivity
- credit card sales
- multi-branch setting
- commercial banking