 Pay for performance (P4P) systems—which are “widely used by firms to both motivate employee effort and attract the best talent”—have been linked to increased levels of depression and anxiety. From a SET perspective, it is not surprising that focusing on financial well-being reduces attending to other important forms of well-being.
From the Abstract: This paper provides evidence linking pay-for-performance (P4P) adoption by employers to long-term and serious mental health problems in employees. Matching survey-based data on P4P adoption by 1,309 Danish firms with wage, demographic, and medical prescription data of 318,717 full-time employees, we find a four to six percent increase in the usage of anti-depressant and anti-anxiety medication after firms adopt P4P. This change is strongest in low-performing and older workers. Dahl, M.S., and Pierce, L. (2019 in press) Pay-for-performance and employee mental health: Large sample evident using employee prescription drug use. Academy of Management Discoveries.
1 Comment
2/28/2025 11:15:09 am
I find the study's findings about P4P systems and their impact on employees’ well-being to be very insightful. Leave a Reply. |
Bruno DyckBruno is an organizational theorist at the University of Manitoba. He loves being a management professor, scholar and teacher. Archives
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BRUNO DYCK
Bruno Dyck enjoys collaborating with managers, scholars, and students to promote SET management principles and practices. He is a Full Professor in the Asper School of Business at the University of Manitoba, and has published several prize-winning books and articles, and won awards for research and teaching, including the 2019 Expanded Reason Award. Bruno enjoys cycling to work year-round, becoming a vegetarian, buying local goods and services, hiking, and spending time with family and friends.
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DAVID HOLCOMB
David Holcomb has assisted in the launch of this website -- developing ideas in conversation with Bruno and turning those ideas into reality. For the past 35 years, business for the common good has been one of David's vocational anchors. He has completed graduate work in both business and theological studies and has worked in both fields. Currently David resides with his family in Milwaukie, Oregon, where he serves as the Director of Finance and Operations with a local non-profit.
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