For a very long time, economists have been researching on connection of good habits and incentives that motivate a person to act. Authentically, the focus was put on material incentives, particularly financial rewards.
Employers often use such incentives to motivate their employees. Unfortunately, this strategy of motivating people may backfire. Analysis has shown that tangible bonuses can decrease motivation, which happens when people perform a job due to the pleasure obtained from something inherent in the job itself.
Connection of Good Habits and Incentives
Developing Habits
Often starting is the most difficult part when it comes to developing a new behavioral habit.
A study implies that incentives can have no effect or indeed backfire when people who are already regularly attending the gym receive incentives to exercise. However, it is proven that incentives had a lasting positive effect on behavior.
Breaking Habits
There are always two sides to a picture. If incentives can assist develop habitual stock, the same should be true when they are used to decrease the unwanted behavior.
A recent study on promoting quitting smoking among pregnant women concluded that 27% quit smoking completely after an introductory period that incentivized them with shopping receipts.
Providing Upfront Incentives
One of the worst problems connected with behavior change is that it causes costs in the present moment (you can take it by an example like eating less unhealthy food) and delays benefits (for example losing weight). It can be challenging for people to involve in healthy behavior if the tasty pizza and ice cream can give us instant pleasure, while refraining from them has more benefits and in the future.
Removal of Barriers
The best method in which incentives can promote behavior change is by eliminating financial barriers to change. For instance, the nearest gym to a person may be too expensive for his budget and he lacks the motivation to drive far to a cheaper location.
A study regarded with college students determined that this can be an efficient policy. In the study, students who got a free gym membership for a semester visited the gym more often (thrice than those who did not receive an incentive). These conclusions imply that financial rewards may be an encouraging way to behavior change in some connections.
