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Variable pay in aerospace and defense engineering companies

Mark M. Oleksak (Department of Management, School of Business Administration and Economics, California State University, Fullerton, California, USA)
Brian H. Kleiner (Department of Management, School of Business Administration and Economics, California State University, Fullerton, California, USA)

Aircraft Engineering and Aerospace Technology

ISSN: 0002-2667

Article publication date: 1 April 1998

Abstract

This paper presents a discussion on the benefits of utilizing variable pay as a component of employee compensation. Several types of variable pay or variable compensation plans are reviewed. Plans that seem well suited to highly educated, professional employees are examined in detail. Case studies are presented that illustrate how variable pay or compensation has been applied by a variety of for‐profit aerospace and defense engineering organizations. These case studies are followed by a description of a small class of non‐profit aerospace and defense engineering organizations known as Federally Funded and Design Centers (FFRDCs). Two variable pay plans that appear to be the most appropriate for the FFRDCs are recommended. A modified gainsharing group vehicle pay plan is recommended. A complementary individual skill‐based variable pay element is also endorsed.

Keywords

Citation

Oleksak, M.M. and Kleiner, B.H. (1998), "Variable pay in aerospace and defense engineering companies", Aircraft Engineering and Aerospace Technology, Vol. 70 No. 2, pp. 124-130. https://doi.org/10.1108/00022669810202435

Publisher

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MCB UP Ltd

Copyright © 1998, Company