How does the size of a person’s salary affect performance in a mixed compensation scheme? | The Oxford Review - OR Briefings

How does the size of a person’s salary affect performance in a mixed compensation scheme?

Research Briefing

Keywords: compensation, mixed compensation, reward, pay, performance -related pay, psychology, salary

Imagine that there are two people doing the same job

Person A receives a fixed salary and a fixed amount for doing a task (performance related pay)

Person B receives a higher fixed salary than person A and the same amount as person A for doing each task (same performance related pay?)

Who is likely to make the most effort, and complete more tasks, person A or B?

At the heart of this question is whether or not people tend to engage in relative thinking in their judgement and decision-making around pay and reward.

If relative thinking is the process that people tend to use, then we would expect that person A would complete more tasks. This is because, when person A looks at the relative amount that completing the task is worth compared to their salary, it is higher than the relative amount person B receives for completing the same task.

Get the full research briefing including all references

 

About our research briefings

 

Not a member?

Apply to join now and get:

 

  1. Weekly research briefings sent direct to you every week
  2. A copy of the Oxford Review containing between twelve and sixteen additional research briefings every month
  3. Research Infographics
  4. Video research briefings.
  5. Special reports / short literature reviews on topics that appear to be getting a lot of research attention or if there has been a recent shift in the thinking or theory
  6. The ability to request a watch list for new research in keyword areas (as long as it is within the realms of:
    1. Leadership
    2. Management
    3. Human resources (not legal aspects)
    4. Organisational development
    5. Organisational change
    6. Organisational learning
    7. Learning and development,
    8. Coaching
    9. Work Psychology
    10. Decision making
  7. Request specific research / brief literature reviews
  8. Access to the entire archive of previous research briefings, copies of the Oxford Review, infographics, video research briefings and special reports.
  9. Access to Live Reports – continually updated as new research on the topic is released
  10. Members only podcasts – research briefings in audio – coming soon
  11. Live continually updated reports

 

Be the most up-to-date person in the room

Apply to join now

Be impressively well informed

Librarysmileherobg

Get the very latest research intelligence briefings, video research briefings, infographics and more sent direct to you as they are published

Be the most impressively well-informed and up-to-date person around...

Powered by ConvertKit
Like what you see? Help us spread the word