Monetary incentives are often used to align employees’ actions with the employer’s goals. We conducted a field experiment in a retail chain to see if an attendance bonus could reduce employee absenteeism.
The Challenge
To reduce absenteeism among apprentices, a major retail chain considered introducing an attendance bonus. The aim was to align employee attendance more closely with operational needs through monetary or time-off incentives.
The Experiment
We tested in a field experiment whether monetary or time-off attendance bonuses could reduce absenteeism among apprentices in retail.
Design: Randomised Controlled Trial (RCT), with two intervention groups and one control group, and a pre- and post-experimental survey
Intervention: Monetary bonus vs. time-off attendance bonus vs. control
Sample: 346 apprentices across 232 stores
Timespan: Around 1 year
The Findings
Surprisingly, the monetary attendance bonus increased absenteeism by around five days per employee per year. This backfire effect was introduced because the monetary bonus weakened employees’ intrinsic motivation to attend work and altered their perception of what was acceptable behavior. The time-off bonus had no clear impact but was better received.
The Contribution
The study highlights a critical insight: monetary attendance incentives can unintentionally undermine social norms at work and backfire—especially among newer employees. These altered norms can persist over time, posing long-term risks for organizational culture. Our partner organization wisely decided not to implement the bonus, avoiding potential erosion of attendance norms across its workforce. This evidence helps HR decision-makers weigh short-term incentive gains against lasting cultural impacts..
The Details
Leonhard Grabe is a PhD candidate whose research focuses on organizational economics, managerial accounting, and HR management. His work combines large-scale field experiments with applied theory to study skills, leadership, and workplace behavior.
