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Build Better Pay-for-Performance (PFP) Compensation Plans

Author

Listed:
  • Gordon M. Sayre

    (EM - EMLyon Business School)

  • Brice Corgnet

    (EM - EMLyon Business School)

  • Roberto Hernán-González
  • Simon Gaechter

    (UON - University of Nottingham, UK)

Abstract

Pay-for-performance compensation plans have a dual nature — increasing both productivity and financial insecurity among employees — so leaders may feel like they're walking a tightrope in trying to get the balance right. While the PFP model can motivate current employees and help attract high performers, the financial incentives inherent in PFP can also shape a cutthroat culture and contribute to employee burnout and turnover. Learn three ways to design pay-for-performance plans wisely.

Suggested Citation

  • Gordon M. Sayre & Brice Corgnet & Roberto Hernán-González & Simon Gaechter, 2026. "Build Better Pay-for-Performance (PFP) Compensation Plans," Post-Print hal-05499609, HAL.
    • Handle: RePEc:hal:journl:hal-05499609
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