The Hawthorne Effect: How to Get a Salary Rise with NPS

If you are one of the increasing number of companies adopting the NPS as a corporate objective, then your salary may already be linked to improvements in your company's Net Promoter Score (NPS). But here's a technique anyone can use to get a salary rise using the psychology behind the NPS.

To describe the technique – known as the Hawthorne Effect – it's best to go back in time… to the 1920's, and to the Hawthorne production plant of Western Electric, just outside Chicago. Researchers from MIT and Harvard were investigating the link between working conditions at the Hawthorne plant and employee productivity. To do this, they tested a number of new working conditions, inviting employees to give their opinion on whether they should be rolled out. The researchers found that whatever it was they asked employees to feedback on, employees recommended it.

For example, when employees were asked what they thought of brighter lighting in the factory, they recommended it, and when asked to trial it, their productivity increased. However, when employees were asked for their advice and feedback on subtler lighting conditions, they recommended that too, and productivity increased. Confused, the investigators re-ran the research, progressively dimming the lighting, but participants remained loyal to whatever it was they were asked about, and productivity kept increasing until the light was no brighter than moonlight! The peculiar effect was confirmed in a separate round of research, this time asking for employee advice on shorter and then longer working hours. Again, whatever it was that employees were asked their opinion about, they recommended it.

The researchers finally realized that what was happening had absolutely nothing to do with what they were asking people their opinion about, and everything to do with asking them for their opinion. They called this effect the Hawthorne Effect: the effect of asking people for their advice on creating loyalty and advocacy. What was happening was that the research participants felt flattered and privileged to be involved in research on a new initiative – and this biased their view towards whatever it was they were testing.

For nearly a century, the Hawthorne Effect has been something of a bane in customer research; it systematically occurs and biases research findings towards whatever is being tested. In focus groups, the Hawthorne Effect can be extremely strong – after 90 minutes of involvement in a new product concept, participants often leave the group passionate advocates of what they have been asked their advice on. So asking people for their advice increases recommend-ability; i.e., NPS. But what's this got to do with getting yourself a salary rise?

To see the power of the Hawthorne Effect for yourself, try using it to get a salary rise. Rather than asking your boss for the salary rise you no doubt deserve directly, first ask them for their advice on something. It doesn't matter what it is you ask advice on (new shoes to buy, where to go on vacation, restaurant to visit...), the important thing is to be seen to be listening to them, and then thanking them for their valued advice. Then hit them with the request for a salary rise. The chances are that treating your boss as your personal advisor, you will have triggered the Hawthorne Effect and they'll be significantly more likely to agree to your salary rise request. By asking them for their opinion you will have not only created goodwill but also flattered their ego, and at a subconscious level, they will feel indebted to you. This psychological indebtedness makes them significantly more likely to agree to whatever it is you are asking of them!

Of course, the Hawthorne Effect is also a quick and powerful way to boost your company's NPS. Simply set up a customer advisory board and invite your most profitable customers to offer their advice on your strategy, product or marketing. Do it online, and you can make the Hawthorne Effect not only fast but also cost-effective and scalable, creating an army of 'promoters' because you are listening to what they have to say. In the B2C sector, Procter and Gamble are doing this on an unprecedented scale and have recruited more than 750,000 consumer advisors in the US to their two online consumer advisory panels. Regular emails ask consumer advisors for their advice on anything from new product concepts to whether a blonde or a brunette should appear in the next ad. The panels generate insight, loyalty and advocacy – are reported to boost sales by up to 30%! For a quick solution to boosting your NPS, think Hawthorne Effect.

Comments

[Ed]

Yikes! Major manipulation coming your way. Whatever happened to the day of providing good service to your customers or your company and being recognized for your work? Instead, let's jack up your NPS by manipulating you to think we're doing a better job rather than actually "doing" a better job. Hmm. I wonder if Google or Apple care about their NPS.

[satya]

Sounds very interesting. I believe we must structure the questions well enough to get the desired behaviour.
There has been lots of discussion around customer councils especially in B2B where customers especially executives from key customers are invited to participate in a session to provide feedback on strategies deployed by a company. It will be interesting to see the hawthorne effect in there.

[Paul Marsden]

Thanks for the comment Ed, and you make a valid point.

Yes, a 'quick win' for companies wanting to boost their NPS is to simply open up a 'listening channel' with their customers. Stop talking at them, start listening to them. The very act of listening creates advocacy (Hawthorne Effect).

However, and this is where the point you make is really important, for a sustainable increase in NPS, I think you not only need to listen to, but also ACT on customer feedback in improving your value proposition. If you don't, then the temporary boost to NPS may quickly evaporate.

But in the words of Confucius, a journey of a thousand miles begins with a single step. And my message is that in the journey to hardwiring customer feedback into your business development, there are immediate rewards for taking the first step.

[Alessandra Frota]

This vision is very interesting but will be better to "keep it secret" – if possible! Thinking about a sales team and how hard is to make them seriously engaged in a strategy to increase NPS, definitely is not a good idea let them know about the Hawthorne Effect.