The Changing Use of Contingent Pay at the Modern British Workplace

| Publication date: 26 Aug 2008 | Theme: Employment & Social policy | NIESR Author(s): Bryson, A | External Author(s): Pendleton, A. and Whitfield, K. | JEL Classification: J30; J33

Using nationally representative workplace data for Britain we show how employers have changed their usage of contingent pay schemes over the last quarter century. We find workplaces are more likely to use collective forms of pay system than they did in the past, and they are more likely to use multiple schemes in combination. Factors associated with each type of pay scheme have varied substantially over time. The changing incidence of each form of contingent pay primarily reflects changes in the behaviour of workplaces rather than changes in the sectoral composition of the economy.

Keyword tags: 
incentive pay, contingent pay, share ownership, profit-related pay, payments-by-results.
Publication type: 

Research programmes