Kannustimet

Kannustimet are stimuli intended to influence individuals’ or organizations’ behavior by offering rewards for desirable actions or penalties for undesirable ones. The term derives from the Finnish verb kannustaa, meaning to spur or encourage. They can take monetary or non-monetary forms.

Monetary incentives include cash bonuses, subsidies, tax credits, grants, vouchers, and performance-based pay. Non-monetary incentives include public recognition, career advancement opportunities, access to preferred resources, or streamlined processes. The choice of incentive depends on the objective, the target group, and the ease of measuring outcomes.

Applications are widespread across economics, public policy, management, education, and health. In public policy, kannustimet are used to promote employment, innovation, energy efficiency, or preventive health behaviors. In organizations, they align employees’ actions with strategic goals. In education, incentives may aim to improve attendance, achievement, or skill development.

Design considerations include ensuring clear, verifiable objectives; targeting the right audience; and evaluating cost-effectiveness. Potential downsides include gaming or manipulation of metrics, distortion of behavior, crowding out intrinsic motivation, high administrative costs, and concerns about equity.

Evidence on effectiveness is mixed and context-dependent. Well-designed incentives can increase targeted behaviors, especially when combined with credible information, support, and safeguards. Poorly designed or misaligned incentives may have limited or temporary effects or unintended consequences.