Performance-related pay and employee well-being: Investigating relationships between rewards, pay, satisfaction, and engagement

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

This paper investigates the relationships between performance-related pay and WE. Two studies were used to investigate these relationships, finding that performance-related pay links directly to WE. Indirectly, performance-related pay links to pay satisfaction, which in turn links to WE. Also, performance-related pay links to pay level which in turn links to pay satisfaction, which in turn links to WE. The links between performance-related pay and WE are weak, showing that, performance-related pay is not sufficient alone; there must be satisfaction with pay level and adequate reward for performance.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2019), "Performance-related pay and employee well-being: Investigating relationships between rewards, pay, satisfaction, and engagement", Human Resource Management International Digest, Vol. 27 No. 4, pp. 11-14. https://doi.org/10.1108/HRMID-03-2019-0080