A new study revealed that employee incentive programs can motivate workers to incorporate data analysis into everyday decisions.
Business managers use a variety of methods to justify a particular decision. Some rely on years of experience working within an industry. Others use data analysis and metrics, and others may simply go by a gut feeling. Of all of these methods, data analysis is considered the most reliable, as it allows decisions to be broken down based on information gathered from a variety of sources.
However, many businesses find it difficult to encourage the use of metrics when making decisions on spending, performance, pricing and more. Fortunately, a new study revealed that employee incentive programs can motivate workers to incorporate data analysis into everyday decisions.
The American Marketing Association found that whether managers used metrics or relied on intuition depended more on company culture than on their personalities. Employees who were trained in an environment that stressed experiences over analytics were more likely to rely on past experience to guide their decisions. Companies that promoted the use of data analysis with rewards and recognition were more likely to have managers who used decision trees and metrics.
The study noted that when companies used metrics to evaluate managers, it forced the employees to work regularly with metrics to ensure they meet expectations. The task of ensuring their own bonus showed the value of using data analysis in decision-making processes. This understanding encouraged them to train other employees to capture and view information, creating a strong metric-driven culture.
Companies that want to implement new processes need to focus on creating the right incentives for employees. Establishing parameters that build a strong culture, such as the use of data analysis, allows businesses to implement lasting changes within their organizations. Using employee incentive programs lets companies promote specific values and traits by recognizing the performance of individuals and encouraging others to follow the desired path.