Paying it forward? The mixed effects of organizational inducements on executive mentoring

Abstract

How might organizational inducements influence the mentoring behavior of senior executives? In a multisource study of senior executives (n = 239) and their direct reports (n = 1,098), the researchers found mixed results—relational inducements (e.g., investments in career development) were positively associated with mentoring whereas transactional inducements (e.g., compensation) were negatively associated. Results are explained from signaling and self‐determination theory wherein inducements communicate organizational priorities that either uphold or undermine mentoring behavior. While prior research has examined the benefits of inducements on job performance, this study reveals that inducements can have differential and unintended consequence on prosocial and relational behavior such as mentoring. It is the first study to examine the unintended and differential consequence of inducements on mentoring behavior. In addition, the findings challenge assumptions about the trickle‐down benefits of organizational rewards and suggest that the consequences of human capital investments extend far beyond the focal leader.