With companies constantly striving for competitive advantage, continued innovation is central to the success of many companies. A Chinese study examined innovative employee behavior across multiple industries and the role of contextual and dispositional factors in this behavior. The study found that innovation job requirements and employee intrinsic interest in innovation had a significant impact on employee innovative behavior, and furthermore that reward could play an important role in eliciting innovative behavior.
Key Topics: Perceived innovation job requirement; Innovative behavior; Intrinsic interest in innovation; Rewards
Do employees really care about what their peers earn? A German study examined the effect of the compensation level of comparable peers on the job satisfaction of managers in the chemicals industry over a five-year period and found that their job satisfaction levels were indeed affected by peer compensation, both in their own company and in the industry more broadly. The effects were found to differ across a number of key criteria, including gender and age.
Key Topics: Social comparison; Job satisfaction; Compensation; Benchmarking
Effectively managing employee turnover is a primary concern for many companies, as they try to retain their most talented employees. Effective turnover management can be particularly important when it comes to the CEO’s top team, as their departure can often have a significant impact on overall company performance. A study of Standard & Poor’s 500 companies from 1994 to 2008 examined the impact of pay dispersion, pay disparity, and pay level relative to the market on executive turnover, and found that not only did these factors significantly impact turnover but that they interacted in interesting ways to increase or decrease turnover levels.
Key Topics: Executive compensation; Benchmarking; Pay disparity; Pay dispersion; Turnover
Short-term bonuses have become prevalent in the workplace, with companies seeing them as valuable tools in engaging and motivating employees. A study in the high-tech manufacturing sector, examined the role of three types of bonuses (cash, family meal voucher, and verbal reward) in employee performance and absenteeism. All bonus types were found to increase performance and decrease absenteeism rates, although key differences in effects were found across the three types of bonuses.
Key Topics: Non-monetary rewards; Short-term bonuses; Employee performance; Absenteeism
As companies continue to strive to fill jobs with the best talent, their search often ends with hiring candidates sourced from outside of the company. A 5-year study of executives at US hi-tech manufacturing companies examined the role that the external labour market plays in gender pay differences. While female executives were found to have higher compensation than comparable men, the results indicate that women hired externally receive less than those hired internally, and as such may be disadvantaged by the external labour market.
Key Topics: Gender pay gap; External labour market; Executive compensation; Promotions; External recruitment
Gender pay gaps continue to persist in many countries, despite direct intervention by governments, regulators, and companies alike. So why does this apparent gender pay inequality continue? A recent German study examined some of the underlying mechanisms relating to perceptions of fair pay and found that both men and women held the belief that lower pay for women was fair. These beliefs appear to be formed and ‘legitimized’ based on people’s experiences of pay inequality in their own occupations and experiencing more value placed on the input of men in the workplace.
Key Topics: Gender pay gap; Fair compensation; Performance evaluation; Pay inequality |
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