Performance Pay and Work-Related Health Problems

DeVaro, Jed; Heywood, John S.

doi:10.1177/0019793916669148

Cited by 32 publications

(17 citation statements)

References 60 publications

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“…Non-standard, precarious, contingent, gig jobs Keune (2013) OECD (2019) Consensus: unions reduce prevalence of non-standard jobs See Howard, 2017 , Benach et al, 2014 for harms and Apouey and Stabile (2019) for benefits Disputed 20. Piece-rate pay, incentive pay, bonuses, for either individual workers or groups of workers Kaufman and Hotchkiss (2003) p. 665 claims less in unions; Garen (1999) finds less incentive pay in unions Likely less in unions DeVaro and Heywood (2017) Likely harms health 21. Vacation leave either with or without pay Ehrenberg and Smith (2015) p. 487 Kaufman and Hotchkiss (2003) p. 664 Consensus: unions provide more Aronsson and Gustafsson (2005) Likely benefits health I.E.…”

Section: Model Of Effects Of Unions On Healthmentioning

confidence: 99%

“…Apouey and Stabile (2019) find that non-standard employment is associated with good mental health due to the job control and flexibility. Piece work and incentive pay (#20) likely harm health ( DeVaro and Heywood, 2017 ). The first economist to suggest harm was Adam Smith: “Workmen ….…”

Section: Associations Between Pathways and Health Regardless Of Union Status; Columns 1 4 5 Tablementioning

confidence: 99%

“…The first economist to suggest harm was Adam Smith: “Workmen …. when they are liberally paid by the piece, are very apt to overwork themselves, and to ruin their health and constitution in a few years” ( DeVaro and Heywood, 2017 ).…”

Section: Associations Between Pathways and Health Regardless Of Union Status; Columns 1 4 5 Tablementioning

confidence: 99%

See 2 more Smart Citations

Labor unions and health: A literature review of pathways and outcomes in the workplace

Leigh

Chakalov

2021

Preventive Medicine Reports

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Highlights Unique literature review links economic and epidemiologic studies on unions. Unions raise wages, decrease inequality, and thereby likely improve health. Unions decrease discrimination and affect other determinants of health. Unions improve workplace safety and health and decrease job-related fatalities. Unions are an underappreciated social determinant of health.

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Section: Model Of Effects Of Unions On Healthmentioning

confidence: 99%

Section: Associations Between Pathways and Health Regardless Of Union Status; Columns 1 4 5 Tablementioning

confidence: 99%

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Labor unions and health: A literature review of pathways and outcomes in the workplace

Leigh

Chakalov

2021

Preventive Medicine Reports

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“…To the best of our knowledge, this study is the first to address how variable compensation shares can lead to stress, emotional exhaustion, and sick days among salespeople varying in job-related resources. Our findings highlight that variable compensation plans include hidden costs that threaten to offset the very objective for which they are employed (DeVaro and Heywood 2017). This finding lays the groundwork for future research.…”

Section: Theoretical Implications and Further Researchmentioning

confidence: 57%

Variable Compensation and Salesperson Health

Habel¹,

Alavi²,

Linsenmayer³

2021

Journal of Marketing

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Positive effects of incentives on salespeople’s motivation, effort, and performance are well-established in literature. This article takes a novel look at their influence on salespeople’s health. The results of four empirical studies, including more than 1,400 salespeople, suggest that an increasing variable compensation share (i.e., greater pay-for-performance component in salespeople’s compensation plans) increases salespeople’s stress, resulting in emotional exhaustion and more sick days. These outcomes are more likely for salespeople with lower personal ability and fewer social resources. The harmful effects of the variable compensation share on salespeople’s health reduce the positive effects of this incentive on sales performance. To practice better marketing for a better world, if variable compensation is used, the authors recommend that managers screen new hires for job-related resources and help their existing staff build such resources. In addition, companies may personalize incentive schemes and sensitize managers to the stress-inducing effects of variable compensation shares.

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“…At first, PRP focused on individual performance and this encouraged individuality over teamwork. However, with the constant changes in technology and the interconnectedness of different activities within the workplace, a majority of organizations have turned to teams to deliver organizational goals (DeVaro & Heywood, 2017). The introduction of teams within organizations has led to the emergence of team-based reward system (De Spiegelaere at al., 2018) within the larger PRP schemes adopted by organizations.…”

Section: Literature Reviewmentioning

confidence: 99%

Performance Related Pay System: How Does It Affect the Performance of the Employees?

2020

EJBM

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Performance-based pay system acknowledges employee dedication and nurtures a high-performance culture which is important for both short-term and long-term organizational success (Allen, Whittaker, & Sutton, 2017). In the past, the government had a great say in employee salary and remuneration. Wages were negotiated and influenced by government regulation (Hegewisch & Filella, 2017). In those days, productivity and profit played no significant role in influencing pay increase. However, things have changed and productivity significantly influences pay increase and job promotion. This study was conducted on two dominating Saudi Arabian companies: Saudi Telecom Company (STC) and Saudi Electric Company (SEC), to investigate the impact of PRP on the performance of the employees in the two industries. The research was conducted on 141 employees in both companies (n=141). The sample was comprised of 131 departmental employees and 10 supervisors. The investigation used a mixed methodology approach where both interviews and questionnaires were applied in the collection of data and SPSS was used to test the main hypothesis. Additionally, various credible sources were used in collecting information on studies conducted previously on PRP by other researchers. The results collected during this study proved that PRP has minimal impact on the performance of the employees, but it works effectively as an employee control system; the system acts as a motivational system but issues like favoritism, lack of team work and clear definition of performance standards prevent the system from being effective. The main limitation of the study, was the time constraint that prevented more respondents from being interviewed. Hence, the interpretation of the results should not be over generalized.

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Performance Pay and Work-Related Health Problems

Cited by 32 publications

References 60 publications

Labor unions and health: A literature review of pathways and outcomes in the workplace

Labor unions and health: A literature review of pathways and outcomes in the workplace

Variable Compensation and Salesperson Health

Performance Related Pay System: How Does It Affect the Performance of the Employees?

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