A growing number of firms offer compensation packages that link pay to performance. The aim is to motivate workers to be more efficient while also increasing their attachment to the company, thereby reducing turnover and absenteeism. The effects of performance-related pay on productivity depend on the scheme type and design, with individual incentives showing the largest effect. Governments often offer tax breaks and financial incentives to promote performance-related pay, though their desirability has been questioned due to large deadweight losses involved. The diffusion of remote work will increase the relevance of performance-related pay

(2022). Performance-related pay and productivity. Do performance-related pay and financial participation schemes have an effect on firms’ performance? [journal article - articolo]. In IZA WORLD OF LABOR. Retrieved from http://hdl.handle.net/10446/204870

Performance-related pay and productivity. Do performance-related pay and financial participation schemes have an effect on firms’ performance?

Origo, Federica
2022-01-01

Abstract

A growing number of firms offer compensation packages that link pay to performance. The aim is to motivate workers to be more efficient while also increasing their attachment to the company, thereby reducing turnover and absenteeism. The effects of performance-related pay on productivity depend on the scheme type and design, with individual incentives showing the largest effect. Governments often offer tax breaks and financial incentives to promote performance-related pay, though their desirability has been questioned due to large deadweight losses involved. The diffusion of remote work will increase the relevance of performance-related pay
articolo
2022
Lucifora, Claudio; Origo, Federica Maria
(2022). Performance-related pay and productivity. Do performance-related pay and financial participation schemes have an effect on firms’ performance? [journal article - articolo]. In IZA WORLD OF LABOR. Retrieved from http://hdl.handle.net/10446/204870
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/204870
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