How Incentive Pay Affects Employee Engagement, Satisfaction, and Trust

Sometimes, these incentives work in ways managers intended them to. But there are ways in which these methods of performance pay can backfire, causing contentious behaviors among employees, complaints about unfair pay distribution, or overwork and stress. Although these critical issues represent real problems for many businesses, little progress has been made in gathering evidence on how different incentive pay schemes — performance-related pay, profit-related pay, and share ownership — might affect employee well-being.