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Incentives cause more stress rather than motivation
Posted on: 16/Jan/2017 4:26:08 PM
A new study published in the Human Resource Management Journal has said that incentive-related pay schemes cause stress rather than motivating employees. The results confirm that performance-related pay is also associated with more intense working. The study was conducted by researchers from the University of East Anglia in London.
Say the researchers, Our study is the first to show empirical support for claims that the productivity gains of these pay schemes might be associated with employees` experience of more intense working. Performance-related pay in particular is associated with the feeling that work might be too demanding or that there is insufficient time to get work done. By tying employees` performance to financial incentives, employers send signals to employees about their intention to reward extra work effort with more pay. Employees in turn receive these signals and feel obliged to work harder in exchange for more pay. We found that only performance-related pay had a positive impact. This new study involved 1,293 managers and 13,657 employees at 1,293 workplaces in London. As a consequence, performance-related pay may be considered exploitative, or a management strategy that increases both earnings and work intensification.
