Bosses' Efforts and Money Incentives Shape Employee Performance and Pay
Leaders who are seen as role models can influence their employees' efforts, especially if the employees look up to them. To encourage better performance, additional financial incentives are needed. A study looked at how a boss's effort and financial rewards can impact an employee's motivation. The unique aspects of this study include the mutual influence between boss and employee, as well as the employee's own baseline satisfaction level. These factors make designing effective contracts more challenging but also more interesting.