The largest American controlled experiment on UBI or Universal Basic Income concluded with some interesting findings. The research revealed the connection between work and people is more than just money. This blog post explores what the findings could mean for employee motivation strategies. Especially for GCC companies where the relentless pursuit of efficiency often leads to disengagement and attrition in spite of financial incentives. GCC managers can glean many important lessons on how to build engaged and motivated teams.
While, the idea of the Universal Basic Income has been around since forever, it had never been studied in details. in 2016, Sam Altman (Open AI CEO) funded a three-year experiment to look into the effects of the UBI. The study started in 2020, just as the pandemic hit. 1000 low income residents from Illinois and Texas were given $1000 a month (a 40% increase in income). An additional 2000 low income residents – the control group – got only $50 per month.
Universal basic income (UBI) is a social welfare proposal in which all citizens of a given population regularly receive a minimum income in the form of an unconditional transfer payment, i.e., without a means test or need to work.
Suprisingly, the $1000 group ended up earning less, did not use the money to skill up and tended to work fewer hours. Which begged the question, is money really the motivator we think it is? And, more importantly, what really motivates people to work?
The Fallacy of Financial Incentives as a Motivator
The idea that people were only motivated by external factors (like rewards) was being challenged back in the late 70s by two psychologists Edward Deci and Richard Ryan. They ran a series of experiments to study motivation. Based on this, Deci and Ryan published put forward their Self Determination Theory (SDT). According to this theory, the highest quality of motivation comes from within and is known as intrinsic motivation. (Intrinsic Motivation and Self-Determination in Human Behavior).
It’s not that rewards don’t matter at all. External rewards like grades for schoolwork or sales incentives can be effective. The key is knowing when to use them, to what extent, and how to trigger internal motivation. In certain cases, external rewards ceased to motivate better performance. In fact, the candle experiment proved that rewards could hamper creativity and innovation.
The Intrinsic Value of Work: More Than Money
GCC managers can sometimes overly rely on financial incentives like bonuses and salary increases to boost productivity among associates. But like we’ve seen in the UBI experiment, these incentives may fail to generate sustained motivation and improve performance.
So, what tools can a captive center manager look at to enhance their team’s productivity and motivation?
Employee motivation goes beyond the money. Work is no longer just a means to an end. Now more than ever, people understand work as their contribution to the machinery of life. Gen Z workers seem to be more concerned with this, than the generations that went before.
Research by Roberta Katz, a former senior research scholar at Stanford’s Center for Advanced Study in the Behavioral Sciences (CASBS) shows that Gen Z will bring significant change to the workforce. One change being a deep desire to do meaningful work.
https://news.stanford.edu/stories/2024/02/8-things-expect-gen-z-coworker (You can read more about the disconnect between what GenZ really wants and what their bosses think they want in this 2023 Deloitte Report.)
GCC Manager guide to Motivation: Purpose and Personal Connection
So what does true motivation hinge on?
According to Deci and Ryan’s SDT Theory, the foundation of motivation is Autonomy, Competence and Relatedness.
Motivation can be puzzling, but there’s tons of behavior research that is shedding more light every day.
For a GCC manager, its important that associates are able to align their daily work to the larger goals of the organization. For instance, call center agents may find greater satisfaction when their work contributes directly to customer satisfaction and retention.
Likewise it’s important that associates are given a chance to excel at their work by providing them ample opportunities to grow and learn (Read more about mastery here).
And finally, it’s important to work on your team’s intrinsic motivations rather than external rewards. The resulting engagement is much longer lasting and with better outcomes.
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What GCC Managers Can Learn: Cultivating a Motivated and Engaged Workforce
Here are some behavior science-led strategies for GCC managers to enhance associate engagement and performance:
Make work enjoyable
Back-office work in GCCs often involves repetitive, monotonous tasks, which can lead to disengagement. According to Deci and Ryan’s Self-Determination Theory (SDT), intrinsic motivation—driven by enjoyment and interest in the task itself—is crucial for sustained engagement. To make work more enjoyable, consider introducing elements of gamification, offering variety in tasks, and encouraging social interactions among team members. When employees enjoy the work they do, they are more engaged and more productive.
By aligning tasks with an agent’s strengths and providing opportunities for creativity and problem-solving, managers can turn even routine tasks into fulfilling experiences.
Recognize contributions : Early and Often
Recognition is a powerful motivator that directly impacts an employee’s sense of competence, one of the core components of SDT. In GCC environments, where agents may feel their work goes unnoticed, regular acknowledgment of their contributions can significantly boost morale and performance. worxogo research shows that managers who appreciate their teams 4 times or more a month have 25% more productive teams. It needn’t be extravagant. Frequent notes of appreciation, public recognition, or performance-based rewards can make a big difference.
Recognizing contributions not only validates an agent’s effort but also fosters a positive work culture that encourages continuous improvement.
Help them succeed with coaching
Providing agents with consistent, personalized coaching helps them feel supported and valued, fulfilling their need for competence and relatedness. Effective coaching in back-office environments goes beyond technical training; it involves helping agents understand the impact of their work and setting clear, achievable goals. According to Gallup, employees who receive regular feedback and coaching are 3.6 times more likely to be engaged at work.
By investing in their growth and aligning their goals with the organization’s objectives, contact center managers can create a more motivated and high-performing team.
Conclusion: The Limitations of Monetary Incentives and the Power of Purpose
At the end of the day, the UBI experiment teaches us that motivation goes far beyond the paycheck. As GCC managers, the challenge lies in understanding what truly drives your teams—beyond mere financial incentives. While financial incentives have their place, the real magic happens when associates find purpose in their work, feel appreciated for their efforts, and are given the tools to succeed.
Making work enjoyable, recognizing contributions, and providing meaningful coaching are not just nice-to-haves—they’re essential strategies in today’s workplace. When associates feel connected to their work, see the impact they’re making, and are supported in their growth, their engagement naturally follows. This isn’t just a theory; it’s a proven approach backed by behavioral science and real-world data.
