Bonuses can often be depicted as additional and excessive compensation payments, particularly for senior management; however, a UK study investigated if bonuses generally act as a substitute for fixed compensation or as an addition to it. The study findings suggest that bonuses are typically a partial substitution of fixed compensation, with the extent of substitution being much larger in lower paid jobs.
Key Topics: Bonus; Variable pay; Pay for performance
The role of management bonuses in employee behavior is a little researched area but one that is potentially of great significance for companies. A study in Canada looked at the impact of management pay for performance bonus eligibility on the turnover levels of non-management employees. The results indicate that management bonus eligibility is indeed related to greater levels of voluntary non-management employee turnover, but is not related to greater involuntary turnover.
Key Topics: Pay for performance; Bonus eligibility; Employee turnover
How to curtail internal misconduct is a constant challenge for most companies, particularly as it can have a significant impact on the company’s reputation and bottom line. A study at the University of South Carolina examined the effects of offering employees financial rewards for reporting internal misconduct on the rate of whistleblowing. The results suggest that offering additional financial rewards can have a positive effect on whistleblowing but that intention to whistleblow is also affected by both an employee’s current compensation level as well as their moral view of misconduct.
Key Topics: Whistleblowing; Employee misconduct; Reward; Compensation
The quality of the relationship between employees and their employer is of central importance to the performance of individuals as well as the companies that employee them. A recent study looked to examine the relationship between employees and their Fortune 1000 companies. The study found that employees on higher compensation perceived their relationship with their employer to be better. Additionally, comparing millennials with middle-aged employees, it was found that millennials generally had poorer perceived relationships with their employer.
Key Topics: Compensation; Golden handcuffs; Millennials; Public relations
With labour markets becoming increasingly competitive, government agencies can often face challenges in attracting and retaining Millennials. A Canadian study examined some of the factors that motivate Millennials in the workplace, as well as their expectations of working in the public sector. The study found that both perceived intrinsic benefits and extrinsic rewards motivate Millennials, while many Millennials working in the public service see it as a vocation.
Key Topics: Public service; Millennials; Motivation |