IMPACT: Investigating Merit Pay Across Countries and Territories
Financial incentives are at the same time the most important and heavily discussed instrument for increasing motivation and performance in organizations. Especially against the background of the increasing internationalization of HR systems, the question how employees react on merit pay is of particular importance. In order to shed light on merit pay increases, IMPACT is a "first-of-its-kind" global study of employee reactions on merit pay. Researchers from more than 40 countries work together to create a unique database, which allows to answer questions of practical and theoretical importance.
Questions to be answered
IMPACT will adress key questions with respect to the design of incentive systems and will be focused around the following questions:
- What is the optimal size of merit pay increases in terms of eliciting greater employee satisfaction and future effort?
- How should managers most effectively distribute limit funds to maximize positive outcomes?
- How can decision makers best manage employee expectations about the incentives they receive in order to facilitate satisfaction and performance?
- What role do employee perceptions about the fairness of the pay system play in terms of employee reactions to pay changes?
- What role does culture play in employee reactions to pay changes?
Information for organizations
Participating organizations will receive a company-specific, detailed feedback report of the results of our data collection including answers to the general questions and tailored feedback. In addition, yearly general feedback reports based on the worldwide project will be provided.
The data collection will include 2 employee surveys
- Pre-Survey: 1–3 months before the merit increase: 10–12 min.
- Post-Survey: 1–3 months after the merit increase: 8–10 min.
Survey data will be matched with merit increases and pay levels from organizational records with a double-blind matching system.