Peer pressure is often treated as something to be feared and managed away. And yet, it is actually a powerful tool in the hands of enlightened managers. The fact is that peer pressure, particularly in harnessing feelings of team loyalty and potential guilt at the fear of disappointing peers, can be highly effective at motivating performance. In fact these emotional ‘incentives’ have been shown to be far more effective and long-lasting than other mechanisms, such as cash incentives, alone. In fact, incorporating peer pressure into cash incentive schemes may be most effective at all.
Measuring the effects of peer pressure may appear to be challenging but companies like Starling can reveal such relational dynamics and make them actionable. The key learning for leaders is to consider incorporating peer pressure alongside more traditional techniques into their management toolkit to maximize overall effectiveness.
Read the article: Wise Leaders Understand the Power of Peer Pressure