Variable compensation plans are generally seen as one of the best ways of motivating salespeople. A US study examined the impact of various types of variable compensation system changes (VCSCs) on the job satisfaction and performance of salespeople. Focusing on the various VCSC dimensions, such as the size and frequency of changes, the researchers found that VCSCs do impact significantly on salespeople’s job satisfaction and performance, but the size of the impact can differ based on various environmental factors.
Key Topics: Variable compensation system; Sales compensation; Job satisfaction
With companies increasingly using pay-for-performance (PFP) plans to drive competitive advantage a study of the US travel industry examined the relative effects of three commonly used PFP plans (merit pay, individual bonuses, and long term incentives) on employee performance and employee turnover. The findings of the study indicate that, in an environment where all three types of PFP plans are operating simultaneously, merit pay has a greater effect on both performance and turnover than bonuses and long term incentives.
Key Topics: Pay for performance; Merit pay; Bonus; Long term incentives; Turnover
Balancing home and work life is a constant challenge for many employees and as such the prevalence of family-friendly company benefits programs, such as childcare and employee assistance programs, has increased as companies seek further avenues to competitive advantage. A study examining the relationship between employee satisfaction, family-friendly benefits programs and employee turnover in U.S. federal agencies found that satisfaction with family-friendly programs reduced turnover levels, although the turnover effect differed by benefit program.
Key Topics: Benefits; Family-friendly programs; Employee turnover; Employee satisfaction
With the ever-increasing importance to companies of offering a high calibre employment proposition in order to attract and retain high calibre employees, researchers in Spain examined three prevalent forms of employee benefits strategies employed by companies to manage employee benefits, namely fixed benefits, flexible benefits, and flex benefits plans, and the effect of these different strategies on company’s' employee attraction and retention capacity. The findings indicated that companies with more flexible benefits offerings had a greater attraction and retention capacity.
Key Topics: Employee benefits; Flexible benefits; Employee attraction; Employee retention
High employee turnover can have various negative implications for companies from loss of key knowledge to higher recruitment costs, and much research has been undertaken to understand the causes. Researchers in Taiwan examined the role of employee loyalty in the hospitality sector and its effects on turnover. The results of the study indicate that a number of factors, including reward and learning and development opportunities, can increase employee loyalty and in turn reduce employee turnover.
Key Topics: Employee loyalty; Employee turnover; Reward; Learning and development