Working without a net: Time, performance, and turnover under maximally contingent rewards.

Researchers examined the performance–turnover relationship under conditions of varying reward contingency with 189 sales representatives who earned base pay plus commission (moderately contingent rewards) during their first 2 months of work and commission-only pay (maximally contingent rewards) thereafter. As predicted by an expanded version of the contingent rewards hypothesis, the performance–turnover relationship was stronger under maximally contingent rewards, higher than any reported in the literature. Using event history analyses, the researchers also showed that current (time-dependent) performance affords a better prediction of turnover than average (time-stationary) performance. Performance velocity (slope over time) had a further, unique effect on turnover risk. The implications of these findings for future studies of the employee turnover process and pay systems were discussed. (PsycINFO Database Record (c) 2010 APA, all rights reserved)