Money talks? The motivational mechanisms of base pay on well-being and work performance

Whether compensation serves as a motivational resource for employees is still a debated subject. It has been suggested that the effect of pay on motivation could be contingent on the satisfaction of the basic psychological needs as outlined by self-determination theory. The current research explored the role of amount of base pay as well as pay fairness discrepancy in relation to basic psychological need satisfaction, autonomous work motivation and, in turn, psychological well-being (i.e., vigor and emotional exhaustion), turnover intentions, and work performance. Managerial need support was also included in the model, so its mechanisms and its effects on the outcomes could be measured against those of pay. Using a combination of archival data and employees' self-reports from 593 Norwegian workers, results revealed that amount of base pay did not predict satisfaction of any of the basic needs, pay fairness discrepancy negatively predicted satisfaction of the needs for autonomy and relatedness and positively predicted satisfaction of the need for competence, whereas managerial need support significantly predicted satisfaction of all three needs. While there was no significant direct relation from amount of base pay to any of the outcomes, results showed a significant direct relation from managerial need support to psychological well-being (positive to vigor and negative to emotional exhaustion) and turnover intentions (negative). There was also a significant direct positive relation from pay fairness discrepancy to turnover intentions.

The Relationship between Work, Health and Job Performance for a Sustainable Working Life: A Case Study on Older Manual Employees in an Italian Steel Factory

BACKGROUND

Supporting and retaining older workers has become a strategic management goal for companies, considering the ageing of the workforce and the prolongation of working lives. The relationship between health and work is especially crucial for older workers with manual tasks, considering the impact of long-standing health impairments in older age. Although different studies investigated the relationship between work ability and job performance, few studies have analysed the impact of workers' capability to balance between health and work demands, including managerial and organisational support (work-health balance). Considering health as a dynamic balance between work and health demands influenced by both individual and environmental factors, we assess the mediator role of work-health balance in the relation between work ability and job performance, both self-reported and assessed by the supervisor.

METHODS

The study utilises data from a case study of 156 manual workers, who were 50 years old or older and employed in a steel company in Italy. Data were collected inside the company as an organiational initiative to support age diversity.

RESULTS

The findings show that work-health balance partially mediates the relationship between work ability and self-rated job performance, while it does not mediate the relationship with job performance as rated by the supervisor. Supervisor-rated job performance is positively associated with work ability, while it decreases with the increasing perceived incompatibility between work and health.

CONCLUSION

A perceived balance between health and work is a strategic factor in increasing manual older workers' job performance. For older workers, not only the perceived capability to work is important but also the organisational health climate and supervisor's support. More studies are needed to verify if managers overlook the importance of health climate and support, as strategic elements that can foster performance for older employees.

Understanding and shaping the future of work with self-determination theory

Self-determination theory has shaped our understanding of what optimizes worker motivation by providing insights into how work context influences basic psychological needs for competence, autonomy and relatedness. As technological innovations change the nature of work, self-determination theory can provide insight into how the resulting uncertainty and interdependence might influence worker motivation, performance and well-being. In this Review, we summarize what self-determination theory has brought to the domain of work and how it is helping researchers and practitioners to shape the future of work. We consider how the experiences of job candidates are influenced by the new technologies used to assess and select them, and how self-determination theory can help to improve candidate attitudes and performance during selection assessments. We also discuss how technology transforms the design of work and its impact on worker motivation. We then describe three cases where technology is affecting work design and examine how this might influence needs satisfaction and motivation: remote work, virtual teamwork and algorithmic management. An understanding of how future work is likely to influence the satisfaction of the psychological needs of workers and how future work can be designed to satisfy such needs is of the utmost importance to worker performance and well-being.

Technology is changing the nature of work by enabling new forms of automation and communication. In this Review, Gagné et al. describe how self-determination theory can help researchers and practitioners to shape the future of work to ensure that it meets the psychological needs of workers.