Well done vs. well paid: The influence of verbal and financial rewards on knowledge sharing

While material rewards have received plenty of attention in the literature, intangible rewards such as receiving praise and verbal recognition for one’s work are still under-researched. This gap remains despite plenty of evidence on how important feeling included and valued is for work motivation (Rogers & Ashforth, 2017; Ellemers et al, 2013). The question of possible differences between material and immaterial rewards for work motivation is of special interest for knowledge workers (Gagné, 2009). If the rendered services and produced goods are knowledge-based rather than tangible, material products, it is much more difficult to put a monetary value against the products or services and the employee knowledge that underpins them. The value of knowledge at work is inherently part of a social exchange process that is influenced by social norms, self and other perceptions, status and the behavioural expectations associated with these (Moser, 2017; Keysar et al., 2008; Cabrera & Cabrera, 2002). Based on these assumptions, it is hypothesised that social rewards such as recognition for team contributions are a stronger motivator for knowledge sharing behaviour than financial rewards.
In three experimental studies (N1 = 38, N2 = 240, N3 = 40) the effects of either verbal recognition (Studies 1 & 2) or pay rewards (Study 3) for contributions to teamwork were tested. All three studies used knowledge sharing dilemmas as experimental paradigms (Moser, 2017) where participants took place in RCTs with teamwork role plays and either knowledge sharing intentions (Studies 1 & 2) or knowledge sharing behaviour (Study 3) measured as outcome variables. Additionally, Study 2 also tested perceived reciprocity of the work environment (6-point scale) as contextual moderator. Study participants in all three studies were postgraduate students in the United Kingdom receiving credits for study participation.
The results in these first studies can be interpreted as differential motivational effects on extra-role behaviour at work, which is especially important for knowledge sharing processes. Knowledge sharing in teams and organisations requires extra effort based on perspective taking, shared goals, and identification with the collective on the part of individual team members and employees (Ellemers et al, 2013). With the value of knowledge being dependent on the work context and the social exchange relations at work, verbal recognition by fellow team members seems to be a strong motivator for positive attitudes towards extra effort, together with perceived reciprocity as an important social norm. In contrast, pay rewards seemed to make participants very calculating and showed them reducing their knowledge contributions considerably compared to when no reward was given, possibly because the pay was seen as inadequate for something as valuable and intangible as their own knowledge. This may be especially the case in knowledge sharing dilemmas where uncertainty about other’s contributions comes into play (Moser, 2017).