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Performance-Based Pay Won’t Motivate

Performance-Based Pay Won’t Motivate

Business trends come and go and sometimes the best laid plans can lead to unintended consequences. A recent article in Business News Daily focuses on a recent study in a HR journal.

Rather than motivating employees, certain types of incentive-based pay structures end up having negative effects, new research finds. A study recently published in the Human Resources Management Journal revealed that workers who receive performance-based pay, such as those whose pay ties into individual or company-wide performance, work harder, but also end up with higher stress levels and lower levels of job satisfaction.

The research found that employees who know that how much money they take home each year is tied to their level of contributions to the organization, or how well their employer as a whole performs financially, are more likely to feel that they are being encouraged to work too hard…

by Chad Brooks, Business News Daily

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