Trust-based working time spurs innovation
Holger Görg, Olivier N. Godart, Aoife Hanley, Christiane Krieger-Boden 08 July 2014
Many firms are replacing traditional working hours with more flexible arrangements, reflecting new thinking on employee motivation. This column presents evidence from Germany that trust-based working time is associated with increased innovation. However, trust-based working hours also contribute to the blurring of workers’ professional and private lives, and may lead to excessive overtime. Careful design of trust-based working arrangements is required to reap the innovations gains while avoiding the health pitfalls.
The organisation of work has changed dramatically over the last few decades. In particular, the formerly rigidly regulated working time has been replaced by flexible working hour schemes in numerous firms around the world. Taking Germany as an example, in 2010, 36% of employees were entitled to some form of flexible working hours scheme (Figure 1).
Health economics Labour markets Productivity and Innovation
Germany, working hours, trust, health, innovation, motivation, overtime, flexibility, working time
Are workers motivated by the greater good? Evidence from a field experiment
Mirco Tonin, Michael Vlassopoulos 28 May 2010
What motivates workers in their job? This column presents evidence from a recent field experiment suggesting that women are motivated by concern about the social cause pursued by their employer, while men are not. This may provide new insight into the gender earnings gap.
What motivates workers? The canonical view in economics is that workers respond to monetary incentives. In line with this perspective, a large literature has been devoted to analysing how compensation contracts should be designed in order to induce workers to be more productive (Prendergast 1999).
gender gap, motivation, field experiment