Dr Stacey Parker
speaker
71 appearances
1 recordings
1 series
first heard Aug 2026
last heard 2 Aug
Dr Stacey Parker’s voice in public audio — every appearance, attributed to the second.
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Well, it's exactly what Mark's describing there.
We describe it as a high risk strategy because it takes a lot to get it right.
There's definitely risks and sort of hidden costs.
And as Mark says, if it's just activating extrinsic motivation, so driving people to
get the cash bonus for the sake of the cash bonus, it could potentially crowd out or undermine their intrinsic motivation for their work.
And that's problematic because intrinsic motivation for work is linked to some of the really great higher quality forms of performance like creativity, innovation, the quality of one's performance, citizenship, helping out other teammates.
So
When we tie cash bonuses to certain aspects of performance, usually it's things we can measure, like the number of widgets produced or a gold medal.
And then people might only focus on doing the behaviours that get those outcomes and not the other important performance behaviours we'd like to see from them at work.
Yes, sometimes depending on how people view the scheme, it may make them feel more stressed and affect their wellbeing.
In fact, there was a really large-scale study somewhere in Europe, I'd have to look it up for you and your listeners later, that tracked organisations that actually introduced pay-for-performance schemes and
And there they saw a rise in the use of anxiety and depression medication, especially amongst women and older workers.
So there's some groups that might also be more at risk.
Well, there'll certainly be different types of industries and jobs where incentives are more the norm.
And for a business to compete in them and attract the best talent, they'll have to have something available to attract and retain those workers.
Absolutely.
But as Mark was saying, it's important to step back and look at it more holistically because there's lots of other things organisations could also do to motivate workers and to support them in addition to or beyond a compensation scheme.
Stacey.
Yeah, absolutely.
That's what we call continuance commitment in the literature, Mark.
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