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
Acquisition related benefits paid to CEOs of targeted companies as part of takeover deals are relatively prevalent and as such a US study sought to examine the bonuses paid to CEOs of targeted companies during acquisitions to better understand the implications for shareholders. Primarily the researchers looked to determine if merger bonuses paid to target CEOs facilitate a wealth transfer from shareholders of the target company to those of the acquiring company. The results found this not to be the case, and that bidders fair worse in deals with such bonuses, despite the finding that they pay lower acquisition premiums.
Key Topics: Mergers and acquisitions; Merger bonus
An effective recruitment strategy is crucial to organizational success and central to this is the employment proposal to prospective employees. A study at the University of Massachusetts looked at the various aspects of the HR offering, including work life balance, reward, and performance policies, as they relate to prospective employees’ job choice decisions. The results suggest that work life balance has a stronger incentive effect than reward and performance policies, and this was found to be the case across both men and women, although it was a greater incentive to women.
Key Topics: Pay mix policies; Incentives; Work–life balance |
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. |