The impact of financial and nonfinancial incentives on business-unit outcomes over time

Suzanne Peterson, Fred Luthans

Research output: Contribution to journalReview article

100 Scopus citations


Unlike previous behavior management research, this study used a quasi-experimental, control group design to examine the impact of financial and nonfinancial incentives on business-unit (21 stores in a fast-food franchise corporation) outcomes (profit, customer service, and employee turnover) over time. The results showed that both types of incentives had a significant impact on all measured outcomes. The financial incentive initially had a greater effect on all 3 outcomes, but over time, the financial and nonfinancial incentives had an equally significant impact except in terms of employee turnover.

Original languageEnglish (US)
Pages (from-to)156-165
Number of pages10
JournalJournal of Applied Psychology
Issue number1
StatePublished - Jan 1 2006



  • Business unit outcomes
  • Fast food industry
  • Financial incentives
  • Nonfinancial incentives
  • Performance management

ASJC Scopus subject areas

  • Applied Psychology

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