The impact of performance related pay on an employee’s life

In this paper, the associations between performance related pay and job fondness, health and the worklife balance of Dutch employees are examined. By using a questionnaire, which was conducted over Dutch employees in the years 2012 and 2014, the associations with performance related pay are examined through several ordinary least squares regressions. From these regressions, it follows that performance related pay is positively correlated with the fondness an employee has for their job, as well as that performance related pay is positively correlated with the health of an employee, and with the number of hours an employee works. Most of these results, however, are of little economic significance.