This study examines an incentive pay system designed for professional employees in the public sector. During a two-year trial period, 73.6 percent of the subjects reached production goals and earned the maximum pay (10 percent above base). Despite the employees’ ability to attain maximum earnings, only a slight majority expressed a desire for continuation of the incentive pay program. Examination of survey responses indicates that those earning the maximum were the least likely to favor continuation of the program. This study uses multiple discriminant analysis to identify respondent characteristics exerting the greatest influence on their acceptance of this incentive pay system. Implications for designing pay for performance plans for professionals are discussed.
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