Does A Performance-Based Pay System Affect Your Mental Health? Study Says Yes

Workers who rely on performance-related pay (PRP) are at an increased risk of depression, a new study has found.

A study, conducted at Scotland’s Aberdeen University, found that people whose salary depends on their performance are more likely to require anti-depressant medication. The findings of the research were published in the journal Industrial Relations.

What is performance-related pay (PRP)?

Performance-related pay, aka merit-based pay, is a target-oriented framework in which employees’ salaries are determined by their ability to meet predetermined objectives and produce outstanding…