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Variable pay: its impact on motivation and organisation performance

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  • Mary Jo Ducharme
  • Mark Podolsky

Abstract

Variable pay is commonly associated with many positive individual and organisation level outcomes, and yet the literature suggests that variable pay plans in general are failing to provide individual performance results. Improved organisation level measures may be more attributable to the inherent financial changes that accompany variable pay plans than to human resources principles. It is suggested that the true strategic advantage that can be derived from motivating employees through variable pay has yet to be fully realised or measured. Implications for theoretical and empirical study are discussed.

Suggested Citation

  • Mary Jo Ducharme & Mark Podolsky, 2006. "Variable pay: its impact on motivation and organisation performance," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 6(1), pages 68-76.
    • Handle: RePEc:ids:ijhrdm:v:6:y:2006:i:1:p:68-76
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