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Link between ill health and performance pay

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More than 200 years after the noted economist Adam Smith noticed coal miners paid by the ton were more likely to work themselves into the ground, scientists in Aberdeen have determined that the link between performance-related pay and poor health is as clear as ever.

The team studied findings from more than 2,500 people across Britain and pinpointed a “strong correlation” between the two.

Professors Keith Bender and Ioannis Theodossiou, from Aberdeen University’s Business School and Centre for European Labour Market Research, said the impact on wellbeing and absence rates should be of concern to staff and employers.

The scientists investigated the impact of performance-related work across a wide range of occupations, and discovered that workers reported higher levels of ill health the longer they were tied to contracts that depended on how much they produce.

Professor Bender said: “We tracked people over time who started off in good health and looked at how often they answered yes to questions about whether they were paid for performance.

“We found those who spent the most time in roles where they were paid for performance were more likely to have ill health later in life.”

“We also found that increased time in performance pay contracts generated higher odds of developing heart illnesses, stomach problems and anxiety, stress and depression.”

Pros Bender said little research had been carried out into the issue, despite the risks being highlighted as far as Adam Smith in the 18th century.

“He noted that if you paid workers by the ton of coal they pulled out of the ground, they were more likely to work themselves so hard that they would ‘ruin their constitution’,” he explained.

“We can all think of common phrases like ‘working yourself to death’ but hardly any research exists to quantify this.”