Reward Type and Management Control: An Examination of Organizational Wellness Programs

Abstract

We examine management control systems in the context of wellness programs — organizational initiatives designed to improve the physical and mental health of employees. In a field study setting, we examine the associations of three different types of incentives (cash, gift cards, and tangible rewards) with reward selection and wellness program performance. We find that employees choose to be rewarded most often with cash, followed by gift cards and tangible rewards, respectively. We find that program participants’ performance is greatest when their chosen reward is a gift card, despite cash rewards being selected more than twice as often. Tangible rewards are the least frequently selected and are associated with lower performance than gift cards but relatively similar performance as cash. These results support theories of individual choice and motivation, and suggest that employees’ incentive choices are not necessarily those with the strongest motivational power.