Motivating Innovation: Cornell U. suggests “pay up!”
Encouraging a sustained culture of innovation in any size company is a challenge. Beyond internal PR campaigns, and “HR motherhood statements”, if there exists no tangible program to push innovation it just won’t happen. Why not? Look the the basics of the psychology of work. A person is going to continue to do their job exactly the same way because it’s easier (no new learning required, and expectations of management can be met). Why upset the apple cart if their’s no incentive to do it?
If a company is serious about innovation management, it has to make the rewards tangible. This starts with money – not salary but bonuses. Cornell University just published a study showing that between an equivalent pay raise and one time bonus, the bonus will motivate the employee 10 times more! This type of incentive has not been lost on large companies who take innovation seriously – like IBM, Google, and Nortel. At one former company I worked at, the patent bonus structure worked like a charm! On initial patent filing each inventor received $3800USD. On granting, the inventor got another $1500USD. At each interval of 5, 10, 15, 20 granted patents – extra bonuses were paid in the range of 5000-20000USD. As well, the companies paid for the production of patent plaques which were handed out at a formal “innovation gala”. This kind of money is obviously “big company” budgets. Early stage startups already thrive on a culture of innovation. But, as the startup grows beyond the founders and initial employees, it would be important to formalize innovation management. It doesn’t have to be with large cash bonuses – but at least a formal recognition.
To encourage sustained innovation:
1. reward the effort
2. celebrate the innovation!
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