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May 14, 2013

Using Marshmallows to Increase Employee Productivity

Walter Mischel’s 1960's Marshmallow Study is one of the best-known self-control studies. Mischel took children, put them in a room by themselves, gave them a treat (a marshmallow), and the following deal: They could eat the treat right away, or wait 15 minutes until the experimenter returned. If they waited, they would get an extra marshmallow. Tracking the kids over many years, Mischel found that the ability to hold out in this seemingly trivial exercise had real and profound consequences. As they matured and became adults, the kids who had shown the ability to wait got better grades, were healthier, enjoyed greater professional success, and proved better at staying in relationships—even decades after they took the test.

In a new study (PDF), Celeste Kidd, found evidence that, in addition to self-control, children’s wait-times are regulated by rational decision-making process that considers environmental reliability. Kidd’s own version of the Marshmallow Study was designed to test the effect of trust; being either unreliable or reliable. In the first part of the study, the researchers handed over a piece of paper and a jar of used crayons, then told a child to either use those crayons or wait for a better set of art supplies. For half the kids, the experimenter kept the bargain, returning with a loaded tray of markers, crayons, and colored pencils. For the other half, the experimenter returned a few minutes later to say, apologetically, that there weren't in fact any better art supplies.

After this, the kids were given the Marshmallow Test. The results were dramatic: 9 out of the 14 kids in the reliable condition held out 15 minutes for a second marshmallow, while only 1 of the 14 in the unreliable condition did. If kids were unsure they were going to get a second marshmallow, they didn't bother to wait.

Children in the reliable condition waited significantly longer than those in the unreliable condition, suggesting that children’s wait-times reflected rational beliefs about whether waiting would ultimately pay off. Her study demonstrates that children's ability to wait for a larger reward (Marshmallow Test) may not only reflect differences in self-control, but also beliefs about the stability of their environment.

Some will say that children are notoriously bad at delaying gratification to achieve greater rewards later, but even as adults, employees constantly work in environments of delayed reward: annual bonuses, promotions, commission checks, and even praise or acknowledgment. Employee satisfaction with delayed reward can depend largely on whether employees can trust the organization. Whether employees can rely on the organization or not. Organizations that can continually engage their employees and create a reliable and trusted environment will more likely be able to retain satisfied employees. Employee satisfaction has shown to lead to increased productivity, organizational system efficiency, and even increased profitability. Have you given your employees a marshmallow today?