This experimental study is the first of its kind to provide evidence for a causal link between performance-related pay and poor health outcomes in those paid on piece rate. It serves as an important reminder for employers to consider the unintended consequences of their reward strategy and ensure that employee stress, which also has a knock-on effect on productivity, doesn’t outweigh the advantages of performance-related pay.

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Reviewed by

Charles Cotton, Senior Performance and Reward Adviser, CIPD

Charles has recently led research into the business case for pensions, how front line managers make and communicate reward decisions, and managing reward risks, as well as the creation of a good practice guide on the annual pay review process. He is also responsible for the CIPD’s public policy work in the area of reward and is a Chartered Fellow of the CIPD.

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