Compensation and performance: A review and recommendations for the future

Ingrid Smithey Fulmer, Barry Gerhart, Ji Hyun Kim

Research output: Contribution to journalArticlepeer-review


In this paper, we undertake two primary tasks. First, we describe trends in pay → performance research since 1990. Examining 30+ years allows us to capture the evolution of thinking and methodology over time. For this purpose, we focus on scholarly work appearing in Personnel Psychology (PP), as well as in the Journal of Applied Psychology (JAP) and Academy of Management Journal (AMJ). As our second task, we go beyond analysis of broad trends, to take a deeper and more substantive dive into the specific topic of pay for performance (PFP) and related areas (pay dispersion, pay communication/transparency), while at the same time drawing on the broader literature on PFP that goes beyond the three journals listed above. We also discuss pay equity, endogeneity, and international issues. Finally, we suggest practical implications, as well as future research directions.

Original languageEnglish (US)
Pages (from-to)687-718
Number of pages32
JournalPersonnel Psychology
Issue number2
StatePublished - Jun 1 2023


  • compensation
  • pay-for-performance
  • performance

ASJC Scopus subject areas

  • Applied Psychology
  • Organizational Behavior and Human Resource Management


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