You Get What You Pay For: The Paradox of Pay and Performance

Canice Prendergast, W. Allen Wallis Professor of Economics, Chicago Booth

As most of us suspect, people perform better and work harder when they are paid well. Evidence shows that people who are incentivized with cash are more motivated and more productive in their jobs. Yet only a quarter of employees have access to pay-for-performance schemes. If companies know that they "get what they pay for," why aren’t pay-for-performance schemes more widespread?

Join Chicago Booth at our Global Leadership Series to hear professor Canice Prendergast lead a discussion on the paradox of pay for performance. Discover how to think strategically about compensation and hiring, how to evaluate the various incentive models, and find out why more money isn’t always the best solution.

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