Team incentives at work: Evidence from a retail bank

Last registered on June 20, 2025
View Trial History

Pre-Trial

Trial Information

General Information

Title
Team incentives at work: Evidence from a retail bank
RCT ID
AEARCTR-0016118
Initial registration date
June 02, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
June 20, 2025, 11:32 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Germany
Region

Primary Investigator

Name
Max Thon
Affiliation
University of Zurich
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Jakob Alfitian
PI Affiliation
Max Planck Institute for Research on Collective Goods
Contact Investigator

Additional Trial Information

Status
In development
Start date
2025-06-02
End date
2025-08-30
Keywords
Behavior, Firms & Productivity, Labor
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Team-based incentives are a widely used management practice aimed at increasing employee performance and motivation. In collaboration with a large German bank, we conduct a randomized field experiment introducing a team incentive scheme for sales employees. First, we aim to provide causal evidence on the effect of team incentives on performance. Second, by combining firm data on individual performance with employee survey responses, we examine heterogeneous effects of the incentive program on performance outcomes.
External Link(s)

Registration Citation

Citation
Alfitian, Jakob and Max Thon. 2025. "Team incentives at work: Evidence from a retail bank." AEA RCT Registry. June 20. https://doi.org/10.1257/rct.16118-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
The retail bank specializes in selling foreign currencies. Our intervention consists of paying a variable compensation for each sale. Specifically, we pay 0.3% on the portion of revenue exceeding €400 up to €600, and 0.5% on the portion exceeding €600. The bonus is capped at a sale value of €1,000, which means the maximum achievable bonus amounts to €2.60 per transaction.
Intervention (Hidden)
The retail bank specializes in selling foreign currencies. Our intervention introduces a team-based incentive scheme by providing variable compensation for each sale. Specifically, we pay 0.3% on the portion of the transaction value between €400 and €600, and 0.5% on the portion exceeding €600. The bonus is capped at a transaction value of €1,000, resulting in a maximum bonus of €2.60 per transaction.

Bonuses are accumulated at the branch level over a three-month treatment period. The total bonus pot for each treatment branch is the sum of all bonuses generated by regular employees, i.e., employees who are primarily assigned to that branch. Transactions made by temporary helpers, employees who work temporarily at a branch where they are not regularly assigned, do not count toward that branch’s bonus pot.

At the end of the three-month period, the total bonus pot is distributed among the regular employees of the treatment branch. The distribution is based on each regular employee’s share of total hours worked among all regular employees of a branch during the treatment period. Hours worked by regular employees at other branches (outside their assigned branch) are also included in the calculation of their individual bonus share.
Intervention Start Date
2025-06-02
Intervention End Date
2025-08-30

Primary Outcomes

Primary Outcomes (end points)
Transaction amount.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Total sales per branch, total sales per employee, heterogeneity analysis with respect to workers pre treatment performance and survey outcomes (worker perception, characteristics, and preferences), absenteeism (subject to data availability).
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We collaborate with a German retail bank and introduce a team incentive in randomly selected branches. The team incentive works as described in the field "Intervention". We assign the treatment on clusters defined by 2-digit postal code regions, such that all branches in the same region are either allocated to the treatment or control condition.
Experimental Design Details
Randomization Method
Clustered randomization was implemented using a computer program, assigning 51 clusters, defined by 2-digit postal code regions, to either the treatment or control group. All branches and their employees within a cluster were assigned to the respective treatment arm.
Randomization Unit
2-digit postal code regions
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
51 clusters, defined by 2-digit postal code regions
Sample size: planned number of observations
Depends on the number of transactions.
Sample size (or number of clusters) by treatment arms
Treatment: 163 employees, 38 branches, 26 cluster;
Control: 157 employees, 39 branches, 25 cluster
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Ethical Review Board, Faculty of Management, Economics and Social Sciences, University of Cologne
IRB Approval Date
2025-05-28
IRB Approval Number
240102MT
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials