Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects

Gerhart, Barry; Fang, Meiyu

doi:10.1016/j.hrmr.2013.08.010

Cited by 181 publications

(166 citation statements)

References 67 publications

Supporting

Mentioning

153

Contrasting

Unclassified

Order By: Relevance

“…To attract, retain, and motivate employees, organizations all over the globe offer non-financial and financial rewards (Rynes et al 2004;Condly et al 2008;Gerhart and Fang 2014;Shaw and Gupta 2015;Ceschi et al 2017). Financial rewards, which represent rewards with monetary value, might take the form of direct financial rewards (e.g.…”

Section: Are Financial Rewards Related To Work Engagement?mentioning

confidence: 99%

Can you buy work engagement? The relationship between pay, fringe benefits, financial bonuses and work engagement

Kulikowski

Sedlak

2017

Curr Psychol

View full text Add to dashboard Cite

What role do financial rewards play as predictors of work engagement? To address this question, based on the Job DemandsResources Theory (JD-R), the relationship between financial rewards and work engagement on a large sample (N = 1201) of multi-occupational employees was investigated. Through three steps of hierarchical regression, salary, fringe benefits, and bonuses were added to a JD-R model predicting work engagement via job resources and job demands; however, this did not lead to any significant improvement in model fit, and all new predictors were not significant. It may be concluded that financial rewards do not explain an additional amount of variance in work engagement over job demands and job resources. These results offer insights into the relationship between financial rewards and work engagement, and suggest that there is insufficient evidence to claim that pay, benefits, and bonuses are related to employee work engagement level.

show abstract

Section: Are Financial Rewards Related To Work Engagement?mentioning

confidence: 99%

Can you buy work engagement? The relationship between pay, fringe benefits, financial bonuses and work engagement

Kulikowski

Sedlak

2017

Curr Psychol

View full text Add to dashboard Cite

show abstract

“…Thus, they become motivated to perform to the best of their potential, which leads to significant improvements in performance in the case of a substantial percentage of them. This incentive effect has been documented at the individual level by analyzing various types of performance measures (Gerhart and Fang, 2014;Gupta and Shaw, 2014) that indicated a significant increase in most of workers' performance during the implementation of pay for performance programs.…”

Section: Positive Effectsmentioning

confidence: 99%

“…Furthermore, Deci and Ryan (1985), in their Cognitive Evaluation Theory, suggested that money affect work motivation, as employees could come to identify the promised financial rewards as the main source of their efforts instead of their genuine interest in performing the respective work behaviors. Yet, several studies contested this position, showing that the detrimental effects of financial rewards on intrinsic motivation are much lower than initially presumed, and that in some cases they can even have positive effects on the interest that workers have in their work tasks (Gagne and Deci, 2005;Gerhart and Fang, 2014).…”

Section: Negative Effectsmentioning

confidence: 99%

“…The general term that labels the strategic use of money in order to increase the employers' performance or contribution is "pay for performance programs" (Gerhart and Fang, 2014). They have gradually become frequent in the Western companies; for instance, a survey of more than 1600 companies showed that 61% of them had implemented a form of pay for performance plan (Hein, 1996).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice

Urieși¹

2017

Scientific Annals of Economics and Business

View full text Add to dashboard Cite

The present research examined the influences of pay for performance programs on employee performance in the Romanian context, by comparing a sample of employees in companies in which such programs are implemented to a sample of employees in organizations in which performance is not used as a criterion in deciding financial rewards. Results show that the work performances of the former, as evaluated by the direct supervisors of each employee, are significantly higher than those of the latter, and that this effect of performance pay is partly mediated by its positive effects on employee perceptions of distributive and procedural justice. Furthermore, results indicate that the individuallevel financial incentive systems are more efficient in fostering work performance than the teamlevel performance pay programs in the Romanian employee sample, and that they also have stronger effects on the two dimensions of organizational justice.

show abstract

“…Businesses know that prospective employees consider a variety of factors, as they evaluate careers. Some individuals value financial incentives, including salary, bonus potential and benefits (Gerhart and Fang, 2014;Bloom and Milkovich, 1998).…”

Section: Corporate Social Responsibility and Human Resources Managementmentioning

confidence: 99%

Corporate sustainability and responsibility toward education

Camilleri

2016

JGR

View full text Add to dashboard Cite

Purpose\ud This paper aims to deliberate on how corporate social responsibility (CSR) ought to be reconceived for better educational outcomes. It suggests that there are win-win opportunities for corporations and national governments to nurture human capital and address any skill gaps and mismatches in the labour market.\ud \ud Design/methodology/approach\ud The businesses’ involvement in setting curriculum programmes may help to improve the quality and effectiveness of extant educational systems. This contribution reports on how different organisations are already engaging in responsible behaviours with varying degrees of intensity and success across many contexts.\ud \ud Findings\ud Many firms are often training and sponsoring individuals to pursue further studies for their career advancement. It also indicated that there are businesses that are engaging in laudable behaviours to attract prospective employees. Moreover, this paper contends that the provision of education, professional development and training will boost the employees’ morale and job satisfaction, which may, in turn, lead to lower staff turnover rates and greater productivity levels in workplace environments.\ud \ud Social implications\ud This contribution implies that organisational cultures and their business ethos could be attuned with the governments’ educational policies to actively respond to the diverse needs of today’s learners and tomorrow’s human resources.\ud \ud Originality/value\ud There is a business case for CSR as the corporations’ strategies realign their economic success with societal progress. Arguably, there is potential that such responsible behaviours can bring reputational benefits, enhance the firms’ image among external stakeholders and could lead to a favourable climate of trust and cooperation within the company itself.peer-reviewe

show abstract

Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects

Cited by 181 publications

References 67 publications

Can you buy work engagement? The relationship between pay, fringe benefits, financial bonuses and work engagement

Can you buy work engagement? The relationship between pay, fringe benefits, financial bonuses and work engagement

Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice

Corporate sustainability and responsibility toward education

Contact Info

Product

Resources

About