Pay for Performance: Popularity and Impact of Incentive Pay in the IT Workforce 2008

October, 2008


The incentive pay debate is intense and has strong advocates on both sides. In this study, we analyze the current trend within the IT industry based on a Computer Economics survey conducted during the first half of 2008. We provide data on the percentage of employees receiving incentive pay by job level, the percentage of compensation comprising incentive pay, the percentage of incentive bonuses based on individual, group, and company performance, and the impact of incentive pay on employee turnover rates. Our study concludes with recommendations for implementing effective programs and mitigating some of the unintended consequences of paying for performance. (5 pp., 6 figs.)
[Executive Summary]