Should performance-related pay schemes come with a government health warning? A study led by Aberdeen University suggests they should – it found that workers who rely on performance-related pay (PRP) are at a higher risk of chronic stress, heart disease and poor mental health.
The study also revealed for the first time that employees on PRP – particularly men – had higher levels of fibrinogen which is involved in blood clotting and is another feature of chronic stress.
The study highlights the need for firms that use PRP contracts to consider implementing policies to alleviate worker stress.
The team in Aberdeen undertook a rigorous statistical analysis of data from the nationwide UK Household Longitudinal Study including blood pressure and stress biomarkers in blood samples.
The results present the clearest picture yet of the link between PRP and ill health.
Professor Keith Bender of the University of Aberdeen Business School, who co-authored the study, said: “Our study provides evidence for physiological wear and tear in PRP workers and is consistent with previous research showing they are more likely to have poor health, including self-reported mental health issues and cardiovascular issues.”
Dr Daniel Powell, study co-author from the University of Aberdeen’s Institute of Applied Health Science, said: “Chronic stress in PRP employees may be due to the need to put in more effort at work, work under time or performance target pressure, or be associated with an uncertain income stream.
“Regardless of the causes, chronic stress may exacerbate health issues by adding strain onto physiological systems or leading to unhealthy coping mechanisms such as alcohol and drug use.
Prof Bender added: “In summary, our results indicate the use of PRP contracts may have unintended consequences for employee health impacting on employee wellbeing and long-term productivity in the workforce.
“With this in mind, it’s important for firms to consider the potential impact on their employees and implement policies to support their wellbeing.”
