An interesting video. Well worth the watch. Hint – it’s not necessarily the carrot OR the stick.

In a nutshell – both the carrot and the stick produce the opposite of what they intend – the more you incent people, the poorer their performance becomes. Once a task has any cognitive element to it (even at the smallest level of cognitive thought) incentive leads to poor performance.

Once people’s basic financial needs are met, motivation is driven most by a desire to connect to something larger than themselves vs. getting more monetary rewards… Over incentives actually lead to poorer performance in aggregate and often to unethical behaviors…..