Staff who depend on performance-related pay (PRP) are at an increased risk of depression, a latest study has found.

A study, conducted at Scotland’s Aberdeen University, found that folks whose salary is dependent upon their performance usually tend to require anti-depressant medication. The findings of the research were published within the journal Industrial Relations.

What’s performance-related pay (PRP)?

Performance-related pay, aka merit-based pay, is a target-oriented framework wherein employees’ salaries are determined by their ability to fulfill predetermined objectives and produce outstanding performance to assist the corporate reach its goals.

The study said increased levels of the chemical fibrinogen – it’s related to depression – were present in the blood of staff whose salaries directly trusted their performance.

Such employment contracts can have unintended effects on staff, researchers warned, while suggesting corporations should take into consideration how these arrangements would affect the health and well-being of their employees.

Professor Keith Bender, chair of economics at Aberdeen University and one among the study co-authors, said corporations must implement supportive policies to supply higher solutions to the issue.

“Our study provides evidence for physiological wear and tear in PRP staff and is consistent with previous research showing they usually tend to have poor health, including self-reported mental health issues and cardiovascular health issues,” Bender said. “For the primary time, we also show that PRP employees – particularly men – have higher blood pressure and better levels of fibrinogen, that are closely related to chronic stress.”

“In summary, our results indicate using PRP contracts can have unintended consequences for worker health impacting worker well-being and long-term productivity within the workforce. With this in mind, it is important for firms to contemplate the potential impact on their employees and implement policies to support their wellbeing,” Bender added.

The team also outlined some aspects that might generate a considerable level of stress in staff.

“Chronic stress in PRP employees could also be attributable to the necessity to put in additional effort at work, work under time or performance goal pressure, or stress related to an uncertain income stream. Whatever the causes, chronic stress may exacerbate health issues by adding strain on to physiological systems or resulting in unhealthy coping mechanisms equivalent to alcohol and drug use,” fellow co-author Daniel Powell explained.

A latest study has revealed that just as stress advances the biological clock, rest and recovery might help restore the consequences.
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Published by Medicaldaily.com