In the current era, characterized by dynamic societal, technological, and economic changes as well as an increasing diversity in the workforce, previous approaches to individual work behaviour are being challenged (Schalk et al. 2010). Demographic trends in the working population, for example, ageing …

We study optimal incentive contracts for workers who are reciprocal to management attention. When neither worker’s effort nor manager’s attention can be contracted, a double moral-hazard problem arises, implying that reciprocal workers should be given weak financial incentives. In a multiple-agent setting, …