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Pricing principles
Are our principles absolute and unassailable, or are they for sale?
In Florida, the COVID-19 vaccination rate among the staff of nursing homes and other long-term care facilities is, by any standard, worryingly low, at barely 38%. Yet in one facility, more than 80% of the staff are fully vaccinated. This remarkable feat was achieved after management offered their people a bonus of $1000 ($100 upfront and the remainder as soon as at least 75% got their jabs). What is going on here?
Staff member Tammy Chandler had her doubts, in particular because she doesn’t quite trust such a new vaccine, but she concedes the bonus pulled her over the line. The plot twist of requiring a minimum proportion of personnel to be inoculated was definitely instrumental in achieving the high vaccination rate (an earlier scheme with just an individual bonus did not have much effect). But ultimately, the actual cash clearly provided the necessary incentive for each individual.
Incentives everywhere
Incentives are not uncommon, quite the contrary. Anyone intent on stimulating or attenuating certain behaviour — whether it is making cats go on their litter tray, keeping children on the straight and narrow, or improving employee productivity — will be well aware of the power of reward and punishment. Pretty…
