Pay-for-Performance and Interpersonal Deviance: Competitiveness as the Match That Lights the Fire

Many organizations use pay-for-performance (PfP) programs in order to fuel employee motivation and performance. In the present article, we argue that PfP may also increase employees' interpersonal deviance (i.e., active harming behavior toward coworkers) because it might induce social comparison and competition. In order to uncover the underlying process, we further argue that this effect should be particularly pronounced for employees who are high in individual competitiveness, that is, employees who have a strong desire for interpersonal comparison and aspire to be better than others. A cross-sectional field study (N = 250) and two experiments (N = 92; N = 192) provide support for our interaction hypothesis. We discuss the theoretical implications regarding PfP and competitiveness, and offer suggestions concerning the practical implementation of PfP.