Viewpoint: why variable pay-for-performance in healthcare can backfire: Evidence from psychological economics

Abstract

Purpose

The purpose of this “viewpoint” is to consider the unintended consequences of variable pay and incentive schemes in healthcare environments.

Design/methodology/approach

Reviews a series of side effects of incentives.

Findings

The paper suggests that pay-for-performance schemes should be avoided.

Originality/value

The area of public sector boards is undergoing considerable change in the UK and this paper, although preliminary, is one of the few to examine the links to motivation.

Citation

Osterloh, M. (2014), "Viewpoint: why variable pay-for-performance in healthcare can backfire: Evidence from psychological economics", Evidence-based HRM, Vol. 2 No. 1, pp. 120-123. https://doi.org/10.1108/EBHRM-12-2013-0037