In pure economic theory, policy making involves applying economic levers — taxes, regulations and economic incentives — to problems that have economic roots. These problems can take the form of: Externalities — when people are impacted through no fault of their own (e.g. second-hand smoke) Misaligned incentives — when people are impacted because the interests […]
Read More… from Behavioural Economics: A Power that Goes Beyond Nudges
Shifting the bulk of compensation from mostly incentives (how much employees earn depends on how much they work) to mostly wages (employees earn the same guaranteed amount no matter how much they work) would, according to economic theory result in less productivity. Employees are no longer incentivised to work as much as possible and, human […]
Read More… from Economic Initiatives Can Lead to Unexpected Behaviours… at First
Rising unemployment, household incomes taking a dip, bankruptcies becoming widespread — these are just some of the hallmarks of an economic recession. We all remember these things from not too long ago. In the recent global downturn, many companies were seen letting go of their highest-wage employees. Though this might make sense from a finance […]
Read More… from Leveraging Cyclical Unemployment for a Stronger Workforce
It is useful for us to analyse levels of employee engagement in organizations both during and in post-recession environments. Here we can define ‘engagement’ as satisfaction with job and commitment to the organization. It would seem likely that a workforce would be less engaged in their work – as well as less happy overall – […]
Read More… from Keeping Employee Engagement High in Tough Times
