Lauren,
Thank you for bringing up such an interesting and timely issue! The following article offers a review of the scholarly literature and includes a description of policies and actions that can be implemented based on what we know about what money can (and cannot) do in terms of enhancing motivation and performance:
· Aguinis, H., Joo, H., & Gottfredson, R. K. 2013. What monetary rewards can and cannot do: How to show employees the money. Business Horizons, 56: 241-249. [available at http://www.hermanaguinis.com/pubs.html]
I hope this helps!
All the best,
--Herman.
Herman Aguinis, Ph.D.
Avram Tucker Distinguished Scholar and Professor of Management
George Washington University School of Business
2201 G Street, NW
Washington, DC 20052
http://hermanaguinis.com/
Hi all,
Is anyone aware of research on the psychology of pay/worth?
As we update our compensation philosophy, I'd love to incorporate research that has considered whether there are meaningful cut-off points in how people respond to salary offers (e.g., whether offering 102k vs. 105k makes a meaningful difference in likelihood to accept or feel satisfied with an offer).
I am aware of research on the psychology of pricing, but so far I haven't seen much on pay. If you know of any work in this area, please let me know!
--
Lauren Jackman
Medallia CEM Certified
Diversity & Inclusion Manager- People & Culture | ❖ Medallia, Inc.