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New research on human resources from Harvard Business School faculty on issues including organizational design, compensation, incentive plans, hiring practices, and recruitment.
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rTSR: When Do Relative Performance Metrics Capture Relative Performance?

by Paul Ma, Jee-Eun Shin, and Charles C. Y. Wang

Managers are increasingly evaluated based on relative performance metrics, particularly relative total shareholder returns (rTSR). This paper finds that the majority of firms that tie CEO performance-based contracts to rTSR do a remarkable job of filtering out the systematic risk in TSR. However, a significant portion of firms make relatively poor choices in the design and selection of rTSR, a result of weak governance and an overreliance on compensation consultants.

Learning or Playing? The Effect of Gamified Training on Performance

by Ryan W. Buell, Wei Cai, and Tatiana Sandino

Games-based training is widely used to engage and motivate employees to learn, but research about its effectiveness has been scant. This study at a large professional services firm adopting a gamified training platform showed the training helps performance when employees are already highly engaged, and harms performance when they’re not.

Stuck in Commuter Hell? You Can Still Be Productive

by Dina Gerdeman

Commuters who listen to music or browse social media might be increasing their chance of a stressful workday. Research by Francesca Gino and colleagues offers better ways to cope with a bad commute. Open for comment; Comment(s) posted.

Forget Cash. Here Are Better Ways to Motivate Employees

by Dina Gerdeman

In today's tight job market, employers must focus on how to attract and keep top talent. Giving away stacks of money may not always be the best incentive, warns Ashley Whillans. Open for comment; Comment(s) posted.

Why Business Should Support Employees Who Are Caregivers

by Danielle Kost

Shifting demographics are causing an increasing number of people to act as caregivers for family and friends—but employers seem hardly to notice the trend. Joseph Fuller discusses why companies should support them. Open for comment; Comment(s) posted.

Women Receive Harsher Punishment at Work Than Men

by Michael Blanding

Women caught in misconduct were 20 percent more likely to be fired and 30 percent less likely to find new employment in the financial services industry, reports new research by Mark Egan and colleagues. Open for comment; Comment(s) posted.

The Salary Taboo: Privacy Norms and the Diffusion of Information

by Zoë B. Cullen and Ricardo Perez-Truglia

Barriers to the diffusion of salary information have implications for a wide range of labor market phenomena. This study of employees of a real organization shows that individuals significantly misinterpret their peers’ salaries, partly due to pervasive preferences for concealing own salary, and a potentially strategic decision of high earners to withhold their personal information.

Work from Anywhere or Co-locate? Autonomy versus Learning Effects at the United States Patent Office

by Prithwiraj Choudhury, Cirrus Foroughi, and Barbara Larson

Managers often ask whether worker productivity rises or falls with work-from-anywhere (WFA) policies. This study of a real firm presents robust econometric evidence that WFA regimes can have positive effects on net worker output, especially for experienced hires working interdependently. For new hires, however, colocation is often needed to facilitate their learning.

Make Your Employees Feel Psychologically Safe

by Martha Lagace

To do their best work, people need to feel secure and safe in their workplace. In a new book, Amy C. Edmondson details how companies can develop psychological safety. Open for comment; Comment(s) posted.

Motivate Me, Please

by Sean Silverthorne

People are often coin-operated when it comes to work, but managers can bring out their best performance using motivators other than money. Open for comment; Comment(s) posted.

Knowing What Your Boss Earns Can Make You Work Harder

by Rachel Layne

Learning what your co-worker earns can make you less productive, but knowing your manager's paycheck can motivate you to work harder. Research by Zoë Cullen. Open for comment; Comment(s) posted.

How Should Managers Deal with the Challenges of Building an Inclusive Workplace?

by James Heskett

SUMMING UP Few doubt the benefits of a diverse workplace. James Heskett's readers offer insights on the most effective management approaches to inclusion. Open for comment; Comment(s) posted.

Religion in the Workplace: What Managers Need to Know

by Dina Gerdeman

Two recent US Supreme Court cases demonstrate that religion in the workplace issues are increasing. How can managers be prepared? It starts with the right attitude, says Derek van Bever. Open for comment; Comment(s) posted.

How Much Does Your Boss Make? The Effects of Salary Comparisons

by Zoë B. Cullen and Ricardo Perez-Truglia

This study of more than 2,000 employees at a multibillion dollar firm explores how perceptions about peers’ and managers’ salaries affect employee behaviors and preferences for equity. Employees exhibit a high tolerance for inequality when job titles differ, which may explain why incentives are granted through promotions, and gender pay differences are most pronounced across positions.

Kids of Working Moms Grow into Happy Adults

by Dina Gerdeman

In earlier research, Kathleen McGinn and colleagues discovered that adult kids of working moms are high achievers at work. Now it turns out they are happy, too. Open for comment; Comment(s) posted.

Cut Salaries or Cut People? The Best Way to Survive a Downturn

by Rachel Layne

When times are tight, companies usually respond with employee layoffs. But what if they held on to workers and cut their salaries instead? New research by Christopher Stanton and colleagues has the answer. Open for comment; Comment(s) posted.

Are There Conditions Under Which Directors Should Consider Hiring a CEO Fired Elsewhere for Inappropriate Behavior?

by James Heskett

SUMMING UP: Executives fired fairly or unfairly over worker violence and harassment charges are about to seek new jobs. James Heskett's readers have widely divergent beliefs about whether they should ever be considered for new posts. Open for comment; Comment(s) posted.

Analyzing the Aftermath of a Compensation Reduction

by Jason Sandvik, Richard Saouma, Nathan Seegert, and Christopher Stanton

This study of the effects of compensation cuts in a large sales organization provides a unique lens for analyzing the link between compensation schemes, worker performance, and turnover.

We May Have Taken Too Much Credit for Easing Workplace Segregation

by Dina Gerdeman

Racial integration of American businesses hasn't improved much despite 40 years of trying. Rembrand Koning discusses the unexpected reason why. Open for comment; Comment(s) posted.

The Dark Side of Performance Bonuses

by Sean Silverthorne

To motivate workers, employers often turn to incentives such as money or recognition. What's become clear is that these programs can also result in unintended consequences—like a financial crisis. Open for comment; Comment(s) posted.