Imagine the last time you made something, maybe a house made out of legos, maybe a hand-made greeting card for someone. Sure, it is tough , sure it takes more effort, but when the thing you want to make is finally made, you cannot stop adoring it. Something similar happens when you buy furniture from IKEA where you usually get the parts only and have to assemble them to create the final product. When the product is fully assembled, you cannot stop yourself from falling in love with the product, after all, you ‘made’ it. This is called the ‘IKEA effect’ .
The term was coined by psychologists post experiments conducted by them in which they found that people have a tendency to like the product they create more than other’s products.
Dan Ariely , a popular author suggests that this effect can be used for motivating employees. How? Simply by giving people credit for what they have built. It allows people to feel more connected with the product as he mentions in his book Payoff. While the implementation might be tougher given the nature of the work these days , where a lot of people are engaged in a single project, but crediting your employees for what they have built can do wonders for the motivation of your employees.