In many countries, the pay gap between senior management and employees is on the rise, as is the research interest in this topic. A study of Chinese publicly traded companies examined whether a pay gap serves to motivate employees to increase their performance or whether effort is reduced due to aversion to inequity. The results of the study indicate that there is an inverted-U relationship between a company’s pay gap and their productivity, meaning that depending on a company’s proximity to the optimal pay gap level a pay gap can have positive or negative company performance implications.
Key Topics: Executive compensation; Pay gap; Employee performance; China Will Employees Be Satisfied With More Flexible Benefits? It Could Depend On Their Personality22/7/2019
Companies are increasingly moving to more flexible employee benefits systems and giving employees more control over their benefits, based on the assumption that this will result in greater employee satisfaction with benefits. But is this assumption unfounded? A study of Spanish employees examined the role of personality traits in the relationship between benefits flexibility and benefits satisfaction. The results indicated that personality traits, particularly self-efficacy and internal locus of control, moderated the relationship between benefit flexibility and benefit satisfaction.
Key Topics: Flexible benefits; Benefit satisfaction; Personality traits; Self-efficacy; Internal locus of control
With companies now having increasingly diverse workforces, a critical question that many face is how to most effectively reward their diverse workforce in order attract, motivate, and retain top talent. A South African study examined the reward preferences of various demographic groups based on characteristics such race, gender, and age. The study results indicated that a ‘one size fits all’ approach to reward management is not effective as employee reward preferences were found to differ across demographic groups.
Key Topics: Total rewards; Demographics; Reward preferences
Companies often use incentive programs, such as cash, points, and gift cards, to provide nominal recognition to employees for good performance, although determining the most efficient method of recognition can be challenging. A French study examined differences in cash, point, and gift card recipient behaviors and found recipients of points and cash based rewards were more satisfied with their reward, while recipients of points and gift cards were more likely to tell others about their rewards.
Key Topics: Incentive programs; Cash rewards; Points rewards; Gift cards; Reward satisfaction
The prevalence of employee ownership in companies has been on the rise in recent years, with companies increasingly using long term incentives and employee stock ownership plans in the belief that it will increase company performance. A comprehensive study across 14 countries looked to examine the validity of this apparent positive link between employee ownership and company performance. The results did indeed find a significant relationship between these two factors, and this positive relationship held across both publicly and privately held companies.
Key Topics: Employee ownership; Long term incentives; Company performance
In the ever-competitive arena of recruiting top talent, companies are increasingly looking at different avenues that can give them a competitive advantage in attracting high caliber employees. A Canadian study examined the effect of innovative perks, training opportunities, and company ethics on the attractiveness of companies to prospective employees and found that all three of these elements increased company attractiveness. Some interesting relationships between these three elements were also found.
Key Topics: Innovative perks; Training; Company ethics; Employee attraction; Organizational attractiveness. |
Popular Reward Chronicle Searches
Compensation. Pay for performance Benefits Millennials Exec compensation Motivation Gender Topics
All
Join The Reward Chronicle Team
Are you passionate about reward? We’d love to hear from you. Click here for more details on how to contact us. |