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
Organizational commitment by employees is one of the cornerstones of any successful company and has been shown to significantly impact various performance metrics. A study carried out in China sought to investigate the relationship between organizational commitment and turnover intention, as well as with intrinsic, extrinsic and social rewards. The study results suggest that all of the aforementioned reward types are positively related to organizational commitment, while turnover intentions were found to decrease as commitment increased. Findings also suggest that organizational commitment is related to a number of other factors, including training and autonomy.
Key Topics: Organizational commitment; Turnover intentions; Extrinsic rewards; Intrinsic rewards; Social rewards
Does age moderate the effect of HR and organizational practices on employee commitment? A recent study on banking employees asked this very question and found that it did. Across a range of practices including reward, training, teamwork, and communication, age was found to impact on the role of these practices on employee commitment. Reward was found to have the greatest impact on commitment, and was a strong determinant of commitment levels across all age groups but was most influential in younger employees.
Key Topics: Affective commitment; Age; Teamwork; Training; Communication |
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