Swiss study: Pay cuts lower performance, raises don’t improve performance

MoneyHere’s a fascinating Swiss study into the effects of raises and pay cuts. The result:

Wage cuts had a detrimental and persistent impact on productivity, reducing average output by more than 20 percent. An equivalent wage increase, however, did not result in any productivity gains.

The cool thing about this study, is that it was done with actual employees in a workplace – not in a lab.

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