Build Better Pay-for-Performance (PFP) Compensation Plans

HAL 2026

Authors: Sayre, Gordon, M., Brice Corgnet, Roberto Hérnan-Gonzalez, Simon Gächter
Cited by: 0

Abstract

Pay-for-performance compensation plans have a dual nature — increasing both productivity and financial insecurity among employees — so leaders may feel like they’re walking a tightrope in trying to get the balance right. While the PFP model can motivate current employees and help attract high performers, the financial incentives inherent in PFP can also shape a cutthroat culture and contribute to employee burnout and turnover. Learn three ways to design pay-for-performance plans wisely.

Fields of Study & Subjects

Employee Performance and Management Human Resource and Talent Management Employee Performance and Motivation

Publication details

Journal / source
HAL
Pages
11
Publication date
8 January 2026
Language
EN