The moderating role of competency-based pay in the relationship between performance feedback systems and individual competency development motivation
Published: October 23, 2026
Abstract
Individual competency development motivation refers to employees’ willingness to proactively learn and enhance their work competencies. This study examines the moderating role of competency-based pay (P2) in the relationship between the performance feedback system and competency development motivation, while also investigating the mediating roles of self-efficacy and instrumentality. Survey data from 280 employees in the plastics industry in Ho Chi Minh City were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that competency-based pay strengthens the effect of the performance feedback system on competency development motivation, while both mediating variables are statistically significant. The findings suggest that enterprises should design and implement these two human resource management practices in an integrated manner.
Keywords
performance feedback systemcompetency-based paycompetency development motivationmoderating roleplastics industrymotivationmoderating roleplastics industry
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