University of Sussex
Browse

File(s) under permanent embargo

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 Nielsen
Most 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.

History

Publication status

  • Published

File Version

  • Published version

Journal

Harvard Business Review

ISSN

0017-8012

Publisher

Harvard Business Review

Department affiliated with

  • Business and Management Publications

Research groups affiliated with

  • Future of Work Hub Publications

Full text available

  • No

Peer reviewed?

  • No

Legacy Posted Date

2018-08-28

First Compliant Deposit (FCD) Date

2018-08-24

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC