The Powerful Influence Of Managers and Co-workers On Employees’ Perceptions Of HR Practices
The importance of HR practices in directing employee behavior is in little doubt, however employees’ perceptions of HR practices, such as pay for performance, can often differ considerably, making it difficult for companies to predict how they will influence behavior. Examining the variability in employees’ perceptions of HR practices, a study of employees in the Insurance and Public sectors found that employees’ perceptions of HR practices were closely related to managers’ and coworkers’ perceptions of HR practices, with those more demographically similar to employees having the greatest influence over their perceptions of HR practices.
Key Topics: Perceptions of HR practices; Demographic similarity
Company boards are often faced with the task of determining CEO compensation based on incomplete information regarding their performance and competency. A study of US S&P 500 companies over a 7-year period examined the relationship between CEOs’ use of language that signals their competency and CEO compensation. The findings of this study indicated that the use of such language by CEOs was related to higher levels for CEO compensation, and this relationship was stronger when CEOs were under threat from shareholder activism.
Key Topics: CEO compensation; CEO performance; Symbolic language; Shareholder letters, Shareholder value principle
Does Status Trump Financial Reward?
What motivates employees most? Is it status or money? A recent Dutch study looked to address these very questions by examining the impact of team sales contests on sales growth in the retail sector and found that under specific conditions employees were motivated by both financial incentives and status amongst peers, but most predominantly by status. The style of manager leadership was also found to increase employee performance, with a transformational leadership style having the greatest impact.
Key Topics: Sales contests; Employee performance; Status; Incentives; Leadership style
In many countries, gender diversity in the workplace is a hot topic and the role of women on corporate boards and compensation committees has come under scrutiny from regulators and legislators. A recent study of US companies examined the effect of compensation committee gender diversity on CEO compensation. Unsurprisingly, women were found to be underrepresented on compensation committees, however of the female members that there were, they were found to be younger and less experienced that their male counterparts. Additionally, greater gender diversity on compensation committees was not found to significantly influence the determination of CEO compensation.
Key Topics: Compensation committee; Gender diversity; Executive compensation; CEO compensation
In many sectors, particularly those with primarily low-skilled jobs, the use of temporary and often migrant workers is on the rise. While there are certain benefits to companies in using temporary migrant workers, their use may come at a cost. A study of the UK food manufacturing sector examined employee absence rates and the tools companies use to reduce absence issues. The results showed that companies were predominantly using punishment rather than reward techniques to combat absence. This study also found that settled migrant workers had similar absence behaviour to native workers, while newer transitory type migrant workers had less job commitment and were more likely to be absent from work.
Key Topics: Absence management; Temporary workers; Migration
The role of long term incentives, particularly equity holdings, in the decision making of CEOs has long been an area of interest for researchers and practitioners alike, given the potential significance of this relationship in company performance. A recent study of CEOs of US companies examined how a CEOs stock option holdings can affect their preference for short- or long-term strategic projects. The study found that when CEOs have accumulated stock option wealth, their likelihood of investing in the long-term increases, however when they have a large amount of recently granted options CEOs are more likely to prefer short-term projects.
Key Topics: Executive compensation; Stock options; Long term incentives; CEO decision making; Temporal orientation
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