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How incentive pay affects employee engagement, satisfaction, and trust
journal contribution
posted on 2023-06-09, 14:48 authored by Chidiebere Ogbonnaya, Kevin Daniels, Karina NielsenMost managers would agree that motivated, productive employees are crucial for organizational success, regardless of company size, industry, or corporate strategy. The question is how to motivate them. O?ering employees performance-based incentive pay is one common approach, and it usually takes one of two forms: bonuses are o?ered to individuals based on assessments of their performance, or bonuses are o?ered as organization-wide incentives, such as pro?t-related pay or share ownership. Sometimes, these incentives work in ways managers intended them to. But there are ways in which these methods of performance pay can back?re, causing contentious behaviors among employees, complaints about unfair pay distribution, or overwork and stress. Although these critical issues represent real problems for many businesses, little progress has been made in gathering evidence on how di?erent incentive pay schemes — performance-related pay, pro?t-related pay, and share ownership — might a?ect employee well-being.
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- Published
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- Published version
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Harvard Business ReviewISSN
0017-8012Publisher
Harvard Business ReviewPublisher URL
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- Business and Management Publications
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- Future of Work Hub Publications
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Legacy Posted Date
2018-08-28First Compliant Deposit (FCD) Date
2018-08-24Usage metrics
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