Unpacking the Motivational Dynamics of PRP: Insights from an Empirical Study of Indian IT Firms

This study aims to understand the motivational impact of Performance-Related Pay (PRP) in the Indian IT industry based on a mixed-methods research. Semi-structured interviews with 10 employees provided qualitative information whereas the quantitative datawere collected using a structured questionnaire among 55 respondents. The results show that PRP has a positive effect on professional engagement, performance, productivity, and job satisfaction of employees and it also helps to reduce turnover intention. However, the research also points out that PRP has a great number of disadvantages, such as subjectivity of evaluation, inefficiency of the developmental feedback, work intensification, and overestimation in terms of workload, competitive working conditions, and weakening of team work. Notably, the findings reinforce the importance of intrinsic motivators, that include: autonomy, flexibility, meaningful and challenging work, supportive relationships, skill development and learning opportunities, in workplace motivation. The research finds that PRP does have a beneficial effect on staff motivation but its application should also be thoroughly thought out taking into consideration the adverse effects and the supplementary influence of intrinsic motivation variables.