- Research Article
- 10.1080/09585192.2026.2673413
Unraveling the complex effects of perceived recognition on affect and task performance: a fueling role of performance pay
- May 12, 2026
- The International Journal of Human Resource Management
- Qianyuan Xiao + 2 more +2
Drawing on reinforcement theory and insights from two-market (monetary and social markets) research, this study investigates the complex relationships among employees’ perceived recognition, affective state, and task performance. Using multi-wave, multi-source data from 387 leader-employee dyads across eight Chinese high-tech companies, we found a U-shaped relationship between perceived recognition and negative affect, which subsequently impacts task performance. Furthermore, pay for individual performance (PFIP) significantly moderates this U-shaped relationship: at low to moderate recognition levels, high PFIP weakens the negative relationship between perceived recognition and negative affect by shifting employees’ focus from social to monetary rewards; at moderate to high recognition levels, high PFIP mitigates the positive relationship between perceived recognition and negative affect by alleviating the psychological pressure and compensating for the decreased motivational effectiveness from excessive perceived recognition. These findings advance total compensation literature by highlighting a potential ‘dark side’ of excessive perceived recognition and address the puzzle of why organizations adopt monetary and non-monetary rewards simultaneously, showing that PFIP dampens recognition’s effects that is counterproductive at low-to-moderate levels but protective at moderate-to-high levels. Our study also has practical implications for organizations seeking to optimize their reward strategies by calibrating recognition intensity and integrating it with performance-based pay.
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