The Impact of Effort-Reward Imbalance on Temporal Discounting in Career Decision-Making

Abstract

Temporal discounting, the tendency to devalue rewards that are further in the future, is widely studied but underexplored in career-decision making, despite its significance for individual and organisational outcomes. While prior research suggests that offering incentives can reduce employees’ temporal discounting rates in a career context and that personality traits may influence this effect, it is less clear how workplace stressors shape discounting behaviour. This study tests whether the Effort-Reward imbalance model (ERI) explains individuals’ tendency to discount career decisions, and whether overcommitment amplifies this effect. Using a cross-sectional survey of 265 working adults, we examined how perceived imbalances between effort and reward relate to discounting rates in career-relevant choices. Contrary to expectations, ERI did not significantly predict the discount rate of career decisions expressed through monetary bonuses, and overcommitment did not significantly moderate this relation. These findings suggest that individuals who experience ERI may not be more prone to impulsive career decisions, and that overcommitment does not exacerbate this tendency. The results contrast with prior studies emphasising incentive effects on discounting of career decisions and highlight the need for future research. Despite limitations, this study provides valuable insights for refining models and methodologies in future research on temporal discounting for career decisions.