Incentive Pay in the Public Sector: A Discriminant Analysis of Professional Employee Responses

This study examines an incentive pay system designed for professional employees in the public sector. During a two-year trial period, 73.6 percent of the subjects reached production goals and earned the maximum pay (10 percent above base). Despite the employees’ ability to attain maximum earnings, o...

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Bibliographic Details
Published in:Review of public personnel administration 1990-10, Vol.11 (1-2), p.71-83
Main Authors: Swiercz, Paul M., Icenogle, Marjorie
Format: Article
Language:English
Subjects:
Attitudes
Bureaucrats
Civil Service
Compensation plans
Design
Discriminant analysis
Effectiveness
Employee attitude
Employees
Goal setting
Incentives
Income
Merit increases
Monetary incentives
Pay for performance
Performance appraisal
Polls & surveys
Production
Productivity incentives
Professionals
Public sector
Responses
Studies
Success
Vocational rehabilitation
Wages & salaries
Wages (incentive)
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Description
Summary:This study examines an incentive pay system designed for professional employees in the public sector. During a two-year trial period, 73.6 percent of the subjects reached production goals and earned the maximum pay (10 percent above base). Despite the employees’ ability to attain maximum earnings, only a slight majority expressed a desire for continuation of the incentive pay program. Examination of survey responses indicates that those earning the maximum were the least likely to favor continuation of the program. This study uses multiple discriminant analysis to identify respondent characteristics exerting the greatest influence on their acceptance of this incentive pay system. Implications for designing pay for performance plans for professionals are discussed.
ISSN:0734-371X
1552-759X
DOI:10.1177/0734371X9001100105