Category: Branding and Marketing

The second core brain network discussed by Waytz and Mason in their HBR article is the Reward Network. This network should be understood by organizational development professionals, marketers, and anyone who manages and leads people. (Please note that you can find discussion of all 4 Brain Networks discussed by Waytz and Mason in a recent HBR article under the category of “The Brain Terrain” on this blog.)

This Reward Network is activated whenever one experiences pleasure in life. When this brain network receives a ‘rewarding’ stimulus, such as when eating a favorite food, it sends a signal for activation of a part of the midbrain known as the Ventral Tegmental Area (VTA), where dopamine is produced, and we feel pleasure. Dopamine transmits the sensation of pleasure and this experience encourages us to want to repeat the behavior—in this case eating a favorite food—in the future. So, for executives and leaders with responsibility for generating good feelings among employees about a workplace, loyalty and optimal conditions for top performance, this particular network is worthy of attention.  Likewise, marketers and brand managers who seek to create trial, repeat purchasing and loyalty among their customers are greatly benefited by knowing what types of products and experiences engage and activate reward networks of customers.

Prior to the late 20^th century, the level of scientific understanding was that the body’s reward system was activated when primary survival needs were met, such as eating, drinking much needed fluids, and having sex (i.e., survival of the species).  According the Waytz and Mason, research has now demonstrated that the reward network in the brain is also sensitive to secondary rewards, including money. And with further research, ‘immaterial rewards’ were added into the mix of what activates the reward center, including status, social approval and anticipation of learning. Curiosity is central to human nature and, for most people, learning is very rewarding.

Delving deeper into the applied realm, a body of Reward Network research has focused on discovering the types of experiences that motivate employees, which Waytz and Mason outline in their HBR article. If a company conducts a survey, they may or may not get honest answers, but direct observation of activation or deactivation of the reward center, through the use of brain scanning technologies, always tells the truth.  Waytk and Mason describe research by Jamil Zaki of Stanford and Jason Mitchell of Harvard, that demonstrates that ‘fairness’ is critically important in motivating people, even those who are part of the “privileged few.” When research subjects were assigned the task of dividing up small amounts of money between themselves and others, findings indicated that the reward centers of their brains were much more activated when they made “generous, equitable choices.”  Hence, one among many suggestions made by Waytz and Mason is that “companies that maintain a reasonable level of internal pay equity would do well to publicize that information among employees. A workplace deemed to be fair is a happy workplace that garners respect and loyalty.

Conversely, unfairness, in all of its expressions, demotivates and deactivates the reward center. This ‘unfairness,’ say Waytk and Mason, includes experiences such as being left out of strategy meetings when one is fully qualified to be there, withholding information from employees, and skyrocketing executive pay. All of this knowledge provides a wealth of information about how to structure cultures that motivate and engage employees, and promote job satisfaction, company loyalty and high performance.