Research: Pay-for-Performance Doesn’t Have to Stress Workers Out

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Research: Pay-for-Performance Doesn’t Have to Stress Workers Out
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Surveys of nearly 900 workers show that perceptions of supervisors have a significant impact on whether these programs succeed.

Pay-for-performance is considered one of the strongest tools to motivate employees, yet despite its popularity, it can sometimes create stress for workers that results in decreased performance, creativity, and engagement. New research suggests that how employees view their supervisor has a role in determining whether workers view PFP as a motivating challenge, leading them to achieve new heights, or a stressful threat that impacts their work.

”is currently an associate professor of human resource management at Hanyang University Business School in South Korea. Her research focuses on the impact of compensation systems, particularly how different types of pay-for-performance affect employee motivation and performance, and has been published in leading management journals. She provides insights to help practitioners design more effective compensation systems through training and consulting.

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