Ability Quote by Dan Ariely
“To summarize, using money to motivate people can be a double-edged sword. For tasks that require cognitive ability, low to moderate performance-based incentives can help. But when the incentive level is very high, it can command too much attention and thereby distract the person’s mind with thoughts about the reward. This can create stress and ultimately reduce the level of performance.”
About This Quote
Source Article: Predictably Irrational, Dan Ariely, 2008
Monetary incentives boost performance at low levels but high rewards can overload attention and cause stress, reducing output.
In simple terms: Money can help or hurt performance depending on amount.
Key Takeaway
Balance incentive size to avoid distraction.
Themes
motivation
performance
stress
attention
Mood
cautious
analytical
Type
advisory
analytical
When to use this quote
- sales targets
- academic testing
- creative work
- team projects
Key Concepts
behavioral economics
incentive theory
cognitive load
Questions to Reflect On
- When have you seen a big bonus hurt performance?
- How can you design incentives that keep focus on the task?
A Different Perspective
High rewards may shift focus from task to reward, impairing complex thinking.
![“If I can stay [involved] with the sport, we can find different ways to motivate people and preach to them and explain to them that all they need is dedication to the sport.” quote by Usain Bolt](https://sms4smile.com/quotes/img-quotes/8a1/usain-bolt-2441_dedication_if-i-can-stay-involved-with-the-sport-we_490538.jpg)
![“[..] we human beings are ready and willing to steal something that does not explicitly reference monetary value - that is, something that lacks the face of a dead president.” quote by Dan Ariely](https://sms4smile.com/quotes/img-quotes/a1f/dan-ariely-1899_funny_we-human-beings-are-ready-and-willing-to_4436.jpg)
