Worker Incentives in the Banking Industry

This study shows that monetary incentives together with performance disclosures lead to significant increases in effort and productivity the multi-branch banking industry. Our results are based on an incentivized credit card campaign run by a commercial bank which employees were paid piece-rate if they sold customer. Later campaign, head office started provide daily reports for all branches of bank. The ultimately resulted 12.5% increase average branch staff changes found heterogeneous across different branches.