This Is Your Brain on Incentives

Bumped up against this site while reviewing my starred items in my google reader.  The post links to another site that lists out 6 ways to stimulate the brain.  As I read through the list I thought it would be interesting to link the way the brain works and incentive program design.  

On with the lesson…

The Brain is Self-Centered

The Brain is a very self-centered entity and general considerations about others do not reach it. Think of it as the center of ME. Do not assume that it has any patience or empathy for anything that does not immediately concern its survival and well-being.

Incentive programs should focus on the benefits the participant will receive – not the benefits the company or sponsor will reap.  Don’t talk about “company goals” – talk about individual rewards.  Link what they will do and the how that impacts them.  Individualize it as much as possible.  Is there a “reward calculator” that lets participants calculate their level of earnings?

The Brain Seeks Contrast

Before/after, with/without, slow/fast all allow the Brain to decide. Contrast is a safe decision engine. It allows quick and safe decisions. Without contrast, it enters a state of confusion, which ultimately results in delaying decision.

Incentives programs should show a difference between not playing and playing.   Show them the difference between being an average performer and a great performer.  When setting up the earnings structure make sure it is crystal clear the difference between levels of performance and link it to what THEY will earn (see #1.)

The Brain is Tangible

Numbers work for the neo-cortex, but the Brain won’t decide based on numbers alone! It is constantly scanning for what is familiar and friendly, what can be recognized quickly, what is tangible and immutable. It cannot process concepts like “flexible solution”, “integrated approach”, or “scalable architecture” without efforts and doubts.

Create a picture of what the awards in the program will do for the participant.  Don’t talk about a 42” TV – talk about watching the SuperBowl with friends.  Don’t talk about earning new appliances – talk about the time savings the new dishwasher will bring.  Paint the picture of the participant using the reward.  See if you can pull #1 and #2 into the discussion to really amp up the influence.

The Brain Remembers Beginning and End

It forgets most everything in the middle. This short attention span has huge implications on how to construct and deliver powerful messages. Placing the most important content at the beginning is a must, and repeating it at the end an imperative. Keep in mind that anything you say in the middle of your delivery will be mostly overlooked.

Create specific periods of performance with specific beginnings and endings.  Include a “fast start” bonus and a “fast finish” bonus when possible.  Segment annual programs into  smaller programs to generate more “beginnings” and “endings.”

The Brain is Visual

Neuroscience demonstrates that when you see something that looks like a snake, you react even before the conscious mind physically recognizes it’s a snake. This implies that visual processing enters the Brain first which can lead to very fast and effective connection to the true decision-maker.

When we talk about painting pictures – why not show a video of the award earner receiving the award – using the award – bragging about the award.  Why do we remember great TV commercials but so few great copy-heavy ads?  Here’s your answer.  We like pictures… “See Spot run.  See spot earn award.  See spot use award.”  Big pictures on every page.  Can you see it?

The Brain Responds to Emotion

Neuroscience has clearly demonstrated that ‘emotional cocktails’- create chemical reactions that directly impact the way we memorize and act.

Your incentive communications should be stories – not statistics.  When reporting performance data in your program connect it to a specific performance story from someone in the program – preferably someone who is well-known within the participant base.  Learning how “Joe” or “Jane” hit their number has more impact than a chart or graph showing average sales figures by region.  Tell the story.

 

 

There you have it – the Pick 6 for your incentive and reward program.  

Check your current program.  Are these elements included?  Why not?

 

Comments

[Charlie Judy]

This is really good - I love the notion that all of this needs to be tied to a story and should evoke images, emotion, etc. Good reference tool!

[Paul Hebert]

Stories are critical. From sales to sales incentives. We're hard-wired to remember and engage with stories. That is the backbone of the internet now - it started as a way to transmit data and now it is a conduit for stories. IMHO.

Thanks Charlie for engaging here.

[Jeff Williams]

Fantastic! Just yesterday I was on a call with colleagues discussing a change in our incentive program that is meeting with some resistance. The problem is not the incentive program it is the lack of connecting with employees on the changes. I kept hearing my colleagues give all the "factual reasons" the new plan is better...but I kept thinking, we have to connect emotionally with what is important to the employee. Love this post...am forwarding it on!

[Paul Hebert]

Glad I could help out Jeff... also - not to be too pushy, but - I'm available via phone to help as well. Just click on the "connect" button at the top or in the right side bar. More than happy to talk IRL (in real life for those in Rio Linda) - that is still an option in today's bit-driven world.

One thing you could do is get the participants in a room and listen to "how" they describe the program - those are the stories they are internalizing and using to communicate around the incentives. Many times you'll hear words like: "if seems as if" or "I feel like" - those aren't statistical words - those are emotional ones. Take those stories and recraft them.

Thanks for letting me know some of this stuff I put out has some value.

[George A Guajardo]

The bit about the brain forgetting everything in the middle seemed a bit fishy to me, until I realized the original author is probably referring to the Serial Position Effect: http://en.wikipedia.org/wiki/Serial_position_effect

While it is true that the brain is biased towards better recall for items toward the beginning and the ends of a list, these findings were based on experiments with nonsense syllables. In other words, they were content free. So, these findings probably don't apply to lists of things that are meaningful.

[Paul Hebert]

Your point about memorization experiments is well made. I also think that we remember the middle better when there is a good story that can carry the information.

I had to stretch a bit to make this fit perfectly but from a program design standpoint - it is still more effective to have shorter programs with memorable starts and finishes. Whether this particular example is a perfect overlay - well - chalk it up to creative license?

[Jennifer Bautista]

I enjoyed how you linked how the brain works with how incentive programs should be set up. We are all familiar with our brains and can understand how they work. Incentive programs can be confusing to set up, if we don't properly consider the ways that people react to them. Linking incentive programs with how our brains react is a great way to set up programs that seem natural with how we think.

[Nate]

I think the most important point made in your post is that making the participant see themselves being effected by the rewards, rather than just receiving the rewards. Being able to sell the outcome is more effective than just selling the reward itself. Salesman do this sort of thing all the time, and it can yield much better results than just telling a consumer product specifications or talking price points.

I also liked your point on segmenting programs to have more beginnings and ends. I can see how giving participants shorter performance periods would cause better performance, as participants wouldn't lose sight of the goal so easily.

Thanks for the continuing insight into incentive programs, Paul.

[Paul Hebert]

Nate - thank you for engaging here. I appreciate the time you took to comment. Not only do shorter performance periods help us keep our eyes on goals - it also increases the number of time we experience the thrill of victory. We love that little jolt of dopamine to our reward centers - something we can never get too much of (almost.)