Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233920 
Authors: 
Year of Publication: 
2020
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Article No.:] 478 [Publisher:] Institute of Labor Economics (IZA) [Place:] Bonn [Year:] 2020
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Economists have for a long time argued that performance-based bonuses raise performance. Indeed, many firms use bonuses tied to individual performance to motivate their employees. However, there has been heated debate among human resources professionals recently, and some firms have moved away from individual performance bonuses toward fixed wages only or collective performance incentive schemes such as profit-sharing or team incentives. The appropriate approach depends on each company's unique situation, and managers need to realize that individual bonus plans are not a panacea to motivate employees.
Subjects: 
bonus
compensation
variable pay
incentives
performance evaluation
evidence-based bonus design
JEL: 
M5
M52
J33
Persistent Identifier of the first edition: 
Document Type: 
Article

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