Do you get what you pay for? Sales incentives and implications for motivation and changes in turnover intention and work effort
- 2.9k Downloads
This study investigated relations between pay-for-performance incentives designed to vary in instrumentality (annual pay-for-performance, quarterly pay-for-performance, and base pay level) and employee outcomes (self-reported work effort and turnover intention) in a longitudinal study spanning more than 2 years. After controlling for perceived instrumentality, merit pay increase, and the initial values of the dependent variables, the amount of base pay was positively related to work effort and negatively related to turnover intention, where both relationships were mediated by autonomous motivation. The amounts of quarterly and annual pay-for-performance were both positively related to controlled motivation, but were differently related to the dependent variables due to different relations with autonomous motivation.
KeywordsPay-for-performance Motivation Work effort Turnover intention Self-determination theory
Compliance with ethical standards
Conflict of interest
None of the authors has any conflict of interest.
All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards.
Informed consent was obtained from all individual participants included in the study.
- Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale: Lawrence Erlbaum.Google Scholar
- DeCharms, R. (1968). Personal causation: The internal affective determinants of behavior. New York: Academic Press.Google Scholar
- Fall, A., & Roussel, P. (2014). Compensation and work motivation. In M. Gagné (Ed.), The oxford handbook of work engagement, motivation, and self-determination theory (pp. 199–217). New York: Oxford University Press.Google Scholar
- Gerhart, B., & Fang, M. (2015). Pay, intrinsic motivation, extrinsic motivation, performance, and creativity in the workplace: Revisiting long-held beliefs. Annual Review of Organizational Psychology and Organizational Behavior, 2, 489–521. doi: 10.1146/annurev-orgpsych-032414-111418.CrossRefGoogle Scholar
- Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, evidence, and strategic implications. Thousand Oaks: Sage.Google Scholar
- Heneman, R. L., Ledford, G. E. J., & Gresham, M. T. (2000). The changing nature of work and its effects on compensation design and delivery. In S. L. Rynes & B. Gerhart (Eds.), Compensation in organizations: Current research and practice (pp. 195–240). San Francisco: Jossey-Bass.Google Scholar
- Lawler, E. E. I. (1971). Pay and organizational effectiveness: A psychological view. New York: McGraw-Hill.Google Scholar
- Locke, E. A., Feren, D. B., McCaled, V. M., Shaw, K. N., & Denny, A. T. (1980). The relative effectiveness of four methods of motivating employee performance. In K. D. Duncan, M. M. Gruenberg, & D. Wallis (Eds.), Changes in working life (pp. 363–388). New York: Wiley.Google Scholar
- Moller, A. C., & Deci, E. L. (2014). The psychology of getting paid: An integrated perspective. In E. Bijleveld & H. Aarts (Eds.), The psychological science of money (pp. 189–211). New York: Springer.Google Scholar
- Pfeffer, J. (1998). Six dangerous myths about pay. Harvard Business Review, 76(3), 108–119.Google Scholar
- Shadish, W. R., Cook, T. D., & Campbell, D. T. (2001). Experimental and quasi-experimental designs for generalized causal inference. Boston: Houghton Mifflin.Google Scholar
- Thierry, H. (2001). The reflection theory on compensation. In M. Erez, U. Kleinbeck, & H. Theirry (Eds.), Work motivation in the context of a globalazing economy (pp. 149–166). Hove: Psychology Press.Google Scholar
- Thierry, H. (2002). Enhancing performance through pay and reward systems. In S. Sonnentag (Ed.), Psychological management of individual performance (pp. 325–347). Chichester: Wiley.Google Scholar
- Vansteenkiste, M., Neyrinck, B., Niemiec, C., Soenens, B., De Witte, H., & Van den Broeck, A. (2007). On the relations among work value orientations, psychological need satisfaction and job outcomes: A self-determination theory approach. Journal of Occupational and Organizational Psychology, 80(2), 251–277.CrossRefGoogle Scholar
- Vroom, V. H. (1964). Work and motivation. New York: Wiley.Google Scholar