Stress in performance-related pay: the effect of payment contracts and social-evaluative threat.

There is some evidence that performance-related pay (PRP) leads to higher levels of stress as it incentivizes employees to work harder for longer. However, PRP in the workplace also typically involves performance monitoring, which may introduce an additional source of stress via social-evaluative threat (SET). The current study examined the effect of PRP on stress while varying the level of performance monitoring/SET. Using an incentivized mixed design experiment, 206 participants completed a simulated work task after being randomly allocated to either a PRP contract (£0.20 per correct response, n = 110) or minimum-performance fixed payment contract (£5 for ≥10 correct responses; £0 for <10, n = 96) condition. All participants completed the task during a high SET (explicit performance monitoring) and low SET (no monitoring) condition. Subjective and objective stress were measured through self-report and salivary cortisol. High SET led to higher levels of self-reported stress but not cortisol, whereas there was no effect of the payment condition on either self-reported stress or cortisol. A statistically significant interaction revealed that high SET-fixed payment participants were significantly more stressed than those in the high SET-PRP group. Estimating the regressions separately for high- and low-performing individuals found that the effect was driven by low-performing individuals. These results suggest that fixed payment contracts that have a minimum performance threshold and which include performance monitoring and SET can be more stressful than traditional piece-rate PRP contracts. The current study suggests that incorporating performance monitoring and SET into payment contracts may affect the well-being of employees.

Poor mental health is associated with the exacerbation of personal debt problems: A study of debt advice adherence.

BACKGROUND: It is known that there is an association between debt and poor mental health. However, much of the literature is observational and focuses on how debt may lead to poor mental health. Here, we are interested in how poor mental health may be associated with debt advice adherence. AIMS: The aim of the study was to investigate the relationship between mental health and debt advice adherence in individuals applying for a formal debt resolution mechanism (an Individual Voluntary Arrangement, IVA). METHOD: Eighty-six participants completed a survey measuring mental health (MHI-5), memory for information discussed during the appointment, attitudes towards IVAs, and trust in the advisor shortly after having a debt advice appointment. Adherence to the advice (whether participants completed the IVA application) was measured 10 weeks later. RESULTS: The study found that the sample demonstrated poor levels of mental health overall but that non-adherent participants had significantly poorer mental health than those who adhered to the advice. CONCLUSION: These results suggest that (a) mental health needs to be considered when advising people with problem debt and (b) future research might examine if mental health support should coincide with important decision points in the debtor's journey out of debt.

Salivary cortisol in university students after the COVID-19 pandemic.

The COVID-19 pandemic required people to navigate lockdowns and unfamiliar restrictions for the first time. It is known that situations characterised by uncontrollability and novelty heighten the physiological response to stress. The data presented here was collected as part of an experimental stress study and offered an opportunity to compare cortisol levels upon arrival to the lab before and after the first UK lockdown, when students had to navigate novel health and safety restrictions on campus. Participants (n = 152) were students who took part in an experiment designed to measure salivary cortisol levels as a response to a stress task. All provided a baseline cortisol sample after arriving to the lab but before the experimental task. Pre-lockdown participants (n = 72) were familiar with the campus rules whereas post-lockdown participants (n = 80) had to adhere to novel restrictions, including health questionnaires, PPE and social distancing. The post-lockdown sample had significantly higher levels of baseline cortisol, cortisol output (AUCg) and cortisol response (AUCi) than the pre-lockdown group. This effect remained significant even after controlling for sample characteristics. These findings suggest that navigating new restrictions may lead to heightened levels of anticipatory stress even if there is no difference in recent general mental health before and after the lockdown.

Managing a moral identity in debt advice conversations.

Previous research has found that stigma can be a barrier to service use but there has been little work examining actual service encounters involving members of stigmatized groups. One such group are those with problematic or unmanageable debts. Providing advice to members of this group is likely to be particularly difficult due to the stigma associated with being in debt. Using conversation analysis and discursive psychology, this study examines 12 telephone advice conversations between debt advisors and individuals in debt. Both clients and advisors oriented to the negative moral implications of indebtedness and typically worked collaboratively to manage these issues. Clients often claimed a moral disposition as a way to disclaim any unwanted associations with debt, but could find it difficult to reconcile this with an insolvency agreement. Moreover, the institutional requirements of the interaction could disrupt the collaborative management of stigma and advisors could manage the subsequent resistance from clients in either client-centred or institution-centred ways. The findings suggest that the products offered by debt advice agencies, as well as the manner in which they are offered to clients, can either help or hinder debtors negotiate the stigma-related barriers to service engagement.