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Open Access
Article
Publication date: 4 September 2024

José Manuel de la Torre-Ruiz, Eulogio Cordón-Pozo, María Dolores Vidal Salazar and Alejandro Ortiz-Perez

Pay communication policies continue to garner attention in human resource management. This article draws on social exchange theory to examine the consequences of different types…

Abstract

Purpose

Pay communication policies continue to garner attention in human resource management. This article draws on social exchange theory to examine the consequences of different types of pay information on employees' perceived organizational support (POS). Similarly, it draws on the relational model to examine whether pay level satisfaction and satisfaction with variable pay and pay raise procedures mediate the relationships between the different types of pay information and employee POS.

Design/methodology/approach

The hypothesized model was tested using structural equation modeling in a sample of 695 employees of Spanish firms.

Findings

The five types of pay information considered in this study did not have a direct effect on employee POS. Furthermore, distributive base pay information and distributive base pay information on other employees in the firm and in the industry had an indirect influence on POS through the multiple mediating effect of pay comparison and pay level satisfaction. Finally, procedural variable pay and procedural pay raise information were indirectly related to employee POS through satisfaction with pay procedures.

Originality/value

This study highlights the importance of considering the type of pay information provided to employees and the need to understand the mediating variables that explain how each type of pay information can influence employees’ POS.

Details

Employee Relations: The International Journal, vol. 46 no. 9
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 15 December 2020

Gabriel Obermann, Nguyen Hoang Oanh and Nguyen Hong Ngoc

This paper investigates the extent, the determinants and the change in the gender pay gap in Vietnam in the period 2010–2016 in order to provide suggestions for policy adjustment…

4505

Abstract

Purpose

This paper investigates the extent, the determinants and the change in the gender pay gap in Vietnam in the period 2010–2016 in order to provide suggestions for policy adjustment to narrow gender pay inequality more effectively.

Design/methodology/approach

This study employs the propensity score matching (PSM) method to examine inequality in pay between female and male earners sharing identical characteristics. The analysis is conducted for both the full sample and various characteristic-based subsamples. This procedure is conducted for 2010 and 2016 separately to discover the change in gap and inequality during this period.

Findings

The matching results based on the data sets taken from the Vietnam Household Living Standards Survey (VHLSS) 2010 and 2016 affirm that gender income inequality in Vietnam, though persisted, decreased significantly in 2016 compared to 2010, and was insignificant in many subsamples in 2016. In addition to the observable determinants including educational level, occupation, economic sector and industry, unobservable factors are proved to also play an important role in creating the gender pay gap in Vietnam.

Practical implications

The research findings suggest that policies aimed at mitigating gender pay inequality should take into account both observable characteristics and unobservable factors such as unobservable gender differences that affect wages and gender discrimination in pay.

Originality/value

This is the first study using a matching technique to investigate gender wage gap in Vietnam. With up-to-date data, longer research period and the superiority of the method used in dealing with sample selection bias, the results obtained are more robust, more detailed and reliable.

Details

Journal of Economics and Development, vol. 23 no. 3
Type: Research Article
ISSN: 1859-0020

Keywords

Open Access
Article
Publication date: 20 October 2021

Aleksandra Gaweł and Katarzyna Mroczek-Dąbrowska

Although several theoretical concepts imply different determinants of female entrepreneurship, the literature lacks a consensus on their significance. The aim of this paper is to…

5621

Abstract

Purpose

Although several theoretical concepts imply different determinants of female entrepreneurship, the literature lacks a consensus on their significance. The aim of this paper is to verify how industry specificity influences the gender pay gap and its relation to female entrepreneurship.

Design/methodology/approach

The authors distinguish industries based on the gender equality level, measured jointly by two factors: pay gap level and female participation rate. The study has been conducted among 22 European countries with relatively similar institutional backgrounds. The authors carry out the analysis based on the panel regression models, which enable the authors to verify two predefined research questions.

Findings

The results of panel regression models indicate that industry specificity plays a significant role in the relation between the pay gap and female entrepreneurship. Generally, it can be concluded that gender pay gap as a measure of gender inequality is dependent on the industry specificity. The dependence is especially visible in the breakdown of male- and female-dominated industries.

Originality/value

The findings are consistent with the assumption that the gender pay gap is a discriminatory factor for women willing to become entrepreneurs in certain industries. The findings of the study may constitute a vital tool in planning to overcome it.

Details

International Journal of Manpower, vol. 43 no. 9
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 23 August 2024

Yeongjoon Yoon and Sukanya Sengupta

The current research investigates the gender difference in the attitudes of current employees and job seekers (or “future” employees) to payroll cost reduction methods (downsizing…

Abstract

Purpose

The current research investigates the gender difference in the attitudes of current employees and job seekers (or “future” employees) to payroll cost reduction methods (downsizing vs cutting pay).

Design/methodology/approach

Two studies were conducted. In Study 1, we analyzed a secondary dataset (survey data) of 2,139 employees in Ireland. In Study 2, we conducted an online experiment on 384 people in the US.

Findings

Study 1 reveals that, for males, downsizing survivors' commitment and job satisfaction levels are higher than those of employees whose pay is cut. In contrast, there were no differences in the commitment and job satisfaction levels between survivors of downsizing and pay-reduced employees for females. The analysis in Study 2 indicates that females are more attracted to organizations that utilize pay cuts over downsizing to overcome financial difficulties. In contrast, males demonstrated no differences in job-seeker attraction outcomes to organizations that chose either of these two payroll cost reduction methods. Thus, the results of the two studies indicate that females, compared to males, form less negative (or more favorable) attitudes toward pay cuts over downsizing.

Practical implications

The findings urge organizations to consider gender differences and develop relevant mitigation plans when one method must be chosen to reduce payroll costs.

Originality/value

The outcomes of this research indicate that the selection of a payroll cost reduction method may lead to a disparate impact on gender composition in an organization.

Details

European Journal of Management Studies, vol. 29 no. 2
Type: Research Article
ISSN: 2183-4172

Keywords

Open Access
Article
Publication date: 6 December 2022

Rosanna Stofberg, Mark Bussin and Calvin M. Mabaso

Despite widespread media attention and growing interest from researchers, pay transparency remains an under-studied field of research and its impact on organizational outcomes…

5616

Abstract

Purpose

Despite widespread media attention and growing interest from researchers, pay transparency remains an under-studied field of research and its impact on organizational outcomes like job turnover is not well understood. This study explores the impact of pay transparency on job turnover intentions through the mediating effect of perceived organizational support (POS) and organizational justice.

Design/methodology/approach

Data from quantitative surveys conducted with 299 employees at four South African organizations with different pay transparency practices were used to test the conceptual model of pay transparency impacting job turnover intentions through the mediators of POS and organizational justice.

Findings

The authors found a weak negative relationship between pay transparency and job turnover intentions and the role of the mediating variables was confirmed. Unexpectedly, the role of the organization emerged as a key variable. Controlling for organization type showed that the direct effect of pay transparency on turnover intentions became insignificant, indicating a stronger effect from organizational factors, of which pay transparency practices are just one.

Originality/value

Identifying a contextual (organizational) dimension to pay transparency practices extends the understanding of this concept and has implications for practice. The study also makes a methodological contribution by demonstrating the value of linking respondent data to a particular organization when researching pay transparency.

Details

Employee Relations: The International Journal, vol. 44 no. 7
Type: Research Article
ISSN: 0142-5455

Keywords

Open Access
Article
Publication date: 16 August 2021

Suzan Abd El Moneim El Balshy and Mamdouh Ismael

This paper aims to present a theoretical framework which reveals the relationship between job evaluation (JE) and the development of fair wage structure from the organizational…

7396

Abstract

Purpose

This paper aims to present a theoretical framework which reveals the relationship between job evaluation (JE) and the development of fair wage structure from the organizational justice (OJ) perspective. It focuses on analyzing the dimensions of job-based pay structure and the use of multifaceted construct of OJ (procedures, distribution and interaction) to determine how the perceived justice of JE's multi-levels construct contributes to achieve the fairness of wage structure.

Design/methodology/approach

This paper adopts an analytical descriptive approach in terms of explaining the perspectives and viewpoints related to the analysis. This paper is based on examining a theoretical framework provided by the authors based on a theoretical review of literature and a set of empirical evidences.

Findings

The design of a hierarchical wage structure counts on the multidimensional approach of JE which consists of three dimensions (processes, outcomes and social system). In addition, the determination of wage structure fairness is dependent on the assessment of the perceived justice of: JE's procedures, wages distribution and management's treatment with its employees.

Originality/value

This study provides a new theoretical contribution in studying the relationship between JE and the design of fair wage structure. This contribution can be regarded as a theoretical foundation for conducting some empirical and comparative studies in the future. The study affords directive mechanisms to policymakers in order to enhance the fairness of the wage structure across the state.

Details

Journal of Humanities and Applied Social Sciences, vol. 5 no. 1
Type: Research Article
ISSN: 2632-279X

Keywords

Open Access
Article
Publication date: 16 October 2019

Ibrahim Amin

The study seeks to analyze concepts of “career grades” and “job grading,” to highlight their importance and objectives for the efficiency of administrative systems. In addition…

3309

Abstract

Purpose

The study seeks to analyze concepts of “career grades” and “job grading,” to highlight their importance and objectives for the efficiency of administrative systems. In addition, it identifies the international standards that can be used to draw grading systems. It explores the most important types of grade structures. It also clarifies grading systems in the Egyptian administrative system. It indicates some methods that can be considered a form of career progression.

Design/methodology/approach

The study employs descriptive, analytical, as well as, legal approaches; it analyzes the information given in the study in terms of relevant legal texts.

Findings

The study identifies precise definitions of both career grades and job grading, referring to these concepts in the Egyptian administrative system. It also suggests that there is no ideal hierarchy to be applied in all administrative systems. Therefore, the study provides some criteria that help to form the appropriate grade structure for each system.

Originality/value

The study analyses some literature on “job grading,” its objectives, its criteria and its main types, presenting an integrated framework that can be used to develop career-structure systems. Finally, the study identifies some methods that can be considered as a means of grading.

Details

Review of Economics and Political Science, vol. 8 no. 6
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 28 May 2024

Clarissa R. Steele and Sarah Holtzen

This study aims to understand differences in perceptions of CEO compensation between working adults and business students in the USA before and after reading CEO pay information.

Abstract

Purpose

This study aims to understand differences in perceptions of CEO compensation between working adults and business students in the USA before and after reading CEO pay information.

Design/methodology/approach

Participants completed a survey about their perceptions of chief executive officer (CEO) compensation before and after reading CEO compensation information that included the median CEO-to-employee ratio and salary in 2021.

Findings

Working adults and business students had similar levels of concern about CEO compensation. Participants were more concerned with CEO compensation after reading information about CEO pay but also believed CEO pay was more justified, contrary to equity theory (Adams, 1965). Among the student and adult samples, women and noninvestors were more likely to have concerns about CEO compensation than other participants.

Practical implications

Individuals may not understand the components of CEO compensation, and the size of CEO salaries may be difficult to comprehend. Educators and the media should consider presenting CEO compensation information in a different way, for example, how long it takes a CEO to earn as much as an average employee does annually, for the public to understand how much more CEOs are paid than their employees.

Originality/value

Little research exists on CEO compensation understanding and concerns. This research opens the opportunity for future studies on CEO compensation, for example, that consider variables other than CEO pay (e.g. equity and other forms of compensation) and what individuals believe CEOs do that justifies their high compensation.

Details

Organization Management Journal, vol. 21 no. 3
Type: Research Article
ISSN: 2753-8567

Keywords

Open Access
Article
Publication date: 19 July 2019

Krishna Prasad, K. Sankaran and Nandan Prabhu

The purpose of this paper is to examine the empirical relationship between gray directors (non-executive non-independent directors) and executive compensation among companies…

3863

Abstract

Purpose

The purpose of this paper is to examine the empirical relationship between gray directors (non-executive non-independent directors) and executive compensation among companies listed in India’s National Stock Exchange (NSE). The paper also examines the possible interplay of relationships between controlling shareholder duality (controlling shareholder being the CEO), ownership category and executive compensation.

Design/methodology/approach

A sample of 438 firms listed in the NSE of India was studied using data spanning five financial years, 2012–2013 to 2016–2017.

Findings

Empirical evidence suggests that there is a positive association between the proportion of gray directors on the board and executive compensation. The sensitivity of executive compensation to gray directors is found to be higher among family controlled firms. This research has also found that CEOs who belong to controlling shareholder groups received higher pay than professional CEOs. The authors conjecture that these results suggest cronyism and may contribute to lower levels of corporate governance practices in the country.

Research limitations/implications

The hybrid board structure, which India has adopted with the desire to bring the best of Anglo Saxon and Japanese board philosophies, has paradoxically led to self-serving boards. Exploration of alternative thinking to bring about changes in the regulatory framework is, therefore, necessary.

Originality/value

Serious problems are identified with the philosophy behind board composition mandated by Listing Requirements for Indian firms with empirical evidence showing how the existing rules generate cronyism and unfairness to minority shareholders.

Details

European Journal of Management and Business Economics, vol. 28 no. 3
Type: Research Article
ISSN: 2444-8494

Keywords

Open Access

Abstract

Details

Employee Relations, vol. 39 no. 6
Type: Research Article
ISSN: 0142-5455

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