The Effectiveness of Carrot and Stick Incentive in Remuneration System of State Higher Education: an Experimental Research

In a remuneration system, employees who reach the specified performance targets will get performance incentives. Performance incentives that are applied can be carrot incentives (positive) or stick incentives (negative).Previous research on the effectiveness of carrots and stick incentives has not shown conclusive results. This study aims to provide evidence on the context of state universities in Indonesia. This research was conducted using experimental methods by the post-test only design and the University of Lampung lecturer as an experimental subject. Time-planning decision data as the dependent variable in the two incentive groups were tested using the Independent Sample T-Test. The study results showed that there are no differences in the time allocation decisions when given Carrot incentives and Stick incentives. However, this research provides evidence that lecturers are motivated to do all task: teaching, research, community service. These results recommended that the performance incentives is effective in encouraging lecturer performance.