This issue of HRMR covers a variety of compensation topics. One aspect of compensation that has, for some reason, stirred up a lot of debate is whether pay is actually motivating. The empirical evidence on this issue is unambiguous — pay can be and has been used effectively to motivate employees. Still, as noted above, consultants, motivational speakers, and some academics continue to denounce the use of extrinsic motivators, especially pay. This is in spite of the fact that most research showing the corrosive effects of extrinsic rewards was not conducted in work settings, and workplace research shows that extrinsic rewards can work quite effectively. The problem in workplace settings is not whether extrinsic rewards can be effective (they can be), but rather the conditions under which they are likely to be most effective. These and other issues are addressed in greater detail by Gerhart and Fang. This paper focuses on the claims and assertions with respect to pay for individual performance, and presents the scientific evidence regarding these claims and assertions. It points to many areas of performance-based pay that could benefit from further research