To use or not to use financial incentives for motivation and performance

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For decades, compensation experts have advocated for the use of financial incentives to motivate work performance, yet organisations keep encountering performance issues caused by these incentives. Using agency, expectancy, and self-determination theory to inform a meta-analysis and a series of experiments, this research will help uncover the most important motivational mechanisms that explain how financial incentives influence different types of performance. Given that compensation accounts for an important proportion of an organisation's operating expenses and that employee engagement is on the decline around the world, this research will provide a strong empirical basis to develop more effective compensation systems.