IMD-OWP22-PostEvent-Report-V11[8]

Q&A →Leadership THE POWER OF INFORMATION AND INCENTIVES WHAT IS YOURHOT TOPIC? Too many organizations are only insufficiently grasping a central idea of psychology and economics: Humans have agency: they choose what they do. WHYDOES IT MATTERNOW? Leaders report frequently that attracting and retaining talent is a serious challenge for their organizations. At the same time, many companies are far behind on their self-defined sustainability goals. We can understand both issues through the lens of economics.

By better understanding what motivates and drives their employees, organizations can develop better incentive schemes to boost performance and retain talent.

KARL SCHMEDDERS Professor of Finance

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