More than Reasonably Priced Furniture: The Ikea Effect

You may shudder recalling the last time you ordered something online, and it arrived in individual boxes with a lengthy set of instructions and an Allen wrench. Believe it or not, a team of Harvard researchers conducted a study on products that involve a do-it-yourself component. You may wonder why a top university would spend time investigating a chain retailer known for selling cabinets, throw pillows and meatballs at a reasonable price. The research team led by Michael Norton tested the hypothesis that individuals would rate the value of a product higher if they were involved in creating it. The study confirmed that individuals valued their self-made creations more than similar products they did not assemble. This behavior has been dubbed the “Ikea effect” and applies to more than just furniture. How can managers apply this information to maximize employee engagement?

Some managers hesitate to delegate because they can do the task faster on their own; a decision that hurts both the manager and employee. The data suggest a product is valued more when you play a role in building it. Using this same thought process, managers should look for more opportunities to get employees involved. Instead of passing over a polished project plan for your employee to execute, ask for their help earlier in the planning process. For example, can you ask an employee to take a stab at putting the project plan together? Employees’ buy-in will increase since they are involved in determining the appropriate activities and goals. Additionally, these stretch assignments will prepare them to take on increasingly more difficult responsibilities with a strong sense of ownership. And don’t we all want employees who are proud of their contributions?

You can apply this same framework to an employee development plan. Some managers identify activities or learning opportunities without including their direct report in the conversation. Although your staff may appreciate this straightforward approach, it may backfire. Your employees may assume their development is entirely in your hands as their manager. It encourages a “wait and see” mentality. Instead, ask your employees to be active participants in the development planning process. For example, ask them to create a first draft of their development plan and reconvene to discuss the results. This has the added benefit of giving employees the chance to insert areas of interest you may not be aware of and provides you with a starting point. Remember, you can still provide guidance and support while empowering employees to own their development.

The “Ikea effect” suggests that adding a little bit of “elbow grease” to a project leads to an increased sense of pride in the outcome. While the goal of this exercise may be to inspire ownership in your employees, it is an opportunity for both of you. After all, no one likes to work for a “micro-manager” who looks over your shoulder and tells you exactly what to do. And while your employees are challenged to get more involved in the projects they are working on, their competency and pride will grow as well.

Originally featured in UBA’s December 2020 HR Elements Newsletter.