The Contingent-Noncontingent Compensation Controversy: An Attempt at a Resolution

Abstract

In order to determine whether contingent compensation has a detrimental effect on worker performance relative to noncontingent compensation (Deci, 1972b), 43 undergraduates were hired for a part-time interviewing job. A test of a proposed resolution of the noncontingent-contingent controversy (in terms of work quality enhancement under contingent compensation and work quality enhancement under noncontingent compensation) yielded support for only the prediction of quantity enhancement under contingent compensation. Moderating effects of individual differences variables (need for achievement and moral maturity) on the relationships of compensation contingency with performance indices were also evidenced.

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