Incentives drive culture

Organisations can put a lot of effort into defining their culture and labelling important values of the people within it.

However, the document which more accurately describes an organisation’s culture is each person’s remuneration statement.

This is because people are most likely to behave in accordance with their incentives.

As an example, if an organisation claims that teamwork is highly valued but each person’s bonus is based on individual performance, then it’s more likely that people will put themselves first over a team.

Documents about culture and values are very important, but in order for them to influence behaviour they must come with rewards and penalties which are continually enforced.

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