Home Research Reports Give employees more free time to increase work performance, suggests new research
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Give employees more free time to increase work performance, suggests new research

by uma

 

Managers seeking to reduce problems caused by employees using too much on-the-job leisure time should offer bonuses that provide more off-the-job leisure time, finds new research from Frankfurt School of Finance & Management.

Employees spend a considerable amount of their working time enjoying on-the-job leisure, the most significant being private use of the internet, which can cost companies billions of dollars due to reduction in effective working time.

Professor Timo Vogelsang, Assistant Professor from Frankfurt School of Finance & Management, investigated the impact of cash or free time bonuses on work performance and leisure time. Participants were asked to complete a task on a computer with internet access which involved moving sliders to randomly predetermined positions.

At the beginning of each task, participants could click the time-out button to access the internet. Subjects were free to choose how to spend their time on the internet and could minimise the internet browser at any time to continue working. In the main experiment, participants were involved in two working periods lasting 30 minutes each.

This study used three groups: one group received €4 for each period, the cash bonus group received €4 for each period and an extra €6 for period one, and the free time bonus group received €4 for each period with an extra 25 minutes to use the internet in period one.

Those given an extra 25 minutes leisure time as a bonus exhibited 60% less on-the-job internet consumption compared to those given extra cash. Also, those given extra leisure time showed increased work performance in terms of completed tasks.

This suggests that a cash bonus doesn’t affect employees’ on-the-job leisure time nor their work performance. However, gifting employees more off-the-job leisure time does reduce on-the-job leisure time of employees and increases their performance while working.

Prof Vogelsang says,
“This study shows that ‘time is not money’ when using a gift of more off-the-job leisure as a form of management control. Compared to money, time has certain favourable characteristics and affects employees’ behaviour at work. Leisure time is a noteworthy alternative to cash bonuses and the various forms of non-cash bonuses currently in use.”

Off-the-job leisure as a bonus can be implemented by informing employees in advance that they can leave early on certain days or that they will be gifted extra holiday days. This suggests that employees may appreciate a better work-life balance over salary increases.

These findings were first published in the journal European Accounting Review.

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More