A Review of Research on the Relationship Between Pay for Performance and Employee Creativity

Abstract

Innovation is the primary driving force for China's economic development and transformation. Innovation-driven strategy is the primary strategy for China's economic development. Enterprises are the main body of the market economy. Among them, employees are the source of enterprise development. How to promote employee creativity in enterprise management is also a key consideration for managers. Chinese enterprises are in an important period of compensation system reform. The innovation-driven development strategy urgently needs enterprises to reform the incentive system, and enterprises implement a pay for performance system to stimulate the creativity of employees. The academic research on pay for performance system and employee creativity is also relatively mature. This paper attempts to explore the research progress of pay for performance system on employee creativity from four perspectives: economics, cognitive psychology, behavioral psychology and cognitive neuroscience. And on the basis of comparative analysis, the nonlinear thinking of researchers in this field on the relationship between pay for performance and employee creativity is discussed.