With equity-based compensation becoming increasingly prevalent below senior management level in companies, a recent study looked at the relationship between equity-based employee incentives and cross-business-unit collaboration in multi-business companies. The results indicate that providing more junior level managers with equity incentives, in addition to profit-based incentive compensation, can elicit higher collaboration. The findings also suggest that equity-based incentives are generally of greater benefit to large companies in high-growth sectors, for companies chasing a related diversification strategy, and in stock market growth periods.
Key Topics: Equity; Long term incentives; Collaboration; Teamwork
There has been much debate by practitioners and academics alike on whether rewarding creativity is effective. To further the analysis of this dynamic, a study in China examined the relationship between creativity, reward, and performance. The researchers reviewed specific dimensions of creativity, and found that rewarding creativity can influence the type of creativity that is expressed.
Key Topics: Creativity; Performance; Compensation
Companies employ various methods of sales compensation to get the most from their sales teams, with one popular method being the sales contest. A recent French study examined if such contests can have a negative effect on aspects of salespeople’s behavior, particularly the quality of their customer listening, which in turn would affect their relationships with customer. The results indicated that under certain conditions customer listening was adversely affected by sales contests.
Key Topics: Sales compensation; Sales contests; Customer listening
It is not always easy to sympathise with CEOs, particularly when it comes to compensation, however a US study sought to shed light on the personal financial impact of corporate bankruptcy on CEOs and how it affects their career earnings. The study examined CEOs of US companies that filed for bankruptcy and found that for CEOs who left the executive labor market following their tenure with a bankrupt company, there was a significant financial loss incurred over the remainder of their career. For those maintaining executive employment, no adverse personal financial effects were found.
Key Topics: CEO compensation; Bankruptcy costs; Executive turnover
Against the backdrop of the ever-increasing internationalization of companies, a recent study looked at the difference in the extent of international integration across various human resource management (HRM) practices in Multinational Companies (MNCs). The study results suggest that person, information and formalized-based mechanisms are used to varying degrees depending on the type of HRM practice being integrated. Person-based integration mechanisms were found to be most commonly used for HRM integration, through the likes of international HRM committees, while reward related integration typically involved high information-based mechanisms, often through companywide reward related HRIS systems.
Key Topics: International HR integration; HRIS; Reward systems |