Center for Advanced Management




Prof. Anthony Nyberg (University of South Carolina)


  • Datum: 09.12.2010
    Zeit: 17:00 - 18:30
    Ort: Institut für Kommunikationsökonomie, Prof. Kretschmer, Schackstr. 4 / 3. OG

The Importance of Context to Pay-For-Performance Effects on Future Employee Performance: How Time, Payment Type, and Employee Characteristics Clarify Theoretical Predictions

Despite strong interest in pay-for-performance’s (PFP) impact on employee performance, understanding this dynamic has been constrained by narrow approaches to PFP context and measurement. In response, we incorporate time and dual pay components into PFP’s operationalization; we also explain how PFP’s influence on future effort, and thus the applicability of popular PFP-relevant theories, increases when contextual factors heighten the attention paid to PFP. We test our approaches with 14,443 employees over five years, finding that single and multi-year measures of merit and bonus pay predict future performance, interact with each other, and vary in effect across employee tenure and performance.

(Paper, 752 KB)