Performance Benefits Of Reward Choice: A Procedural Justice Perspective

Reward choice - employees' ability to exercise control over the formal rewards they receive from work - is an important part of many HRM strategies. Reward choice is expected to increase employee performance, but conflicting findings highlight the need to better understand how and when it will do so. Based on fairness heuristic theory, we predicted that procedural justice mediates reward choice's influence on performance, and that choice attractiveness moderates that influence. A field study and an experiment both had similar results, supporting our predictions. Reward choice can increase performance by as much as 40 percent, but only when the available choices are attractive to employees.