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1 – 10 of over 90000Atul Mitra, Nina Gupta and Jason D. Shaw
The purpose of this paper is to make a comparative assessment of the relationship between types of pay plans and several workforce‐level outcomes in 214 organizations. The plans…
Abstract
Purpose
The purpose of this paper is to make a comparative assessment of the relationship between types of pay plans and several workforce‐level outcomes in 214 organizations. The plans include pay that is skill‐based, job‐based, and market‐based. The types of workforce‐level outcomes include workforce flexibility, attitudes, membership behaviors, and productivity. The paper also assesses the relationship between the success of pay plans and workforce productivity/membership behaviors.
Design/methodology/approach
Survey data from 214 organizations are used to test the hypothesized relationships using hierarchical regression analysis and partial least square techniques.
Findings
Results support a significant and positive relationship between skill‐based pay plans, workforce flexibility, and workforce attitudes. Skill‐based pay plans, when compared with market‐based pay plans, are found to positively relate to workforce membership behaviors, and workforce attitudes mediate this relationship. Similarly, workforce flexibility mediates the positive relationship between skill‐based plans and workforce productivity. The success of skill‐based plans depends on significant improvements in workforce productivity and membership behaviors. The fit between the pay plan and the facility's climate/culture moderates the relationship between workforce productivity and the pay plan's success.
Practical implications
The results indicate that skill‐based pay plans are superior for achieving several organizational and employee outcomes. The authors discuss the implications of these results for research and practice.
Originality/value
Limited comparative empirical evidence exists on the effects of different types of pay systems on organizational outcomes. The paper seeks to address this gap.
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Discusses the adoption of skills‐based pay as a part of Total Quality Management schemes in three US companies, in respect of raising standards, retaining staff and increasing…
Abstract
Discusses the adoption of skills‐based pay as a part of Total Quality Management schemes in three US companies, in respect of raising standards, retaining staff and increasing staff versatility. Provides a definition of skills‐based pay and a number of its major forms. Gives a few case studies to illustrate the use of skills‐based pay and a number of main learning points.
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A degree or diploma has traditionally served as a general criterion for hiring and pay decisions. This approach is inconsistent with emerging skill‐ or competency‐based…
Abstract
A degree or diploma has traditionally served as a general criterion for hiring and pay decisions. This approach is inconsistent with emerging skill‐ or competency‐based compensations systems. Such systems only recognize and pay for the skill or competency required by the task to which an employee is assigned. As employers adopt skill‐based pay systems, it is reasonable to ask whether they will continue to use degrees and diplomas in their hiring and pay decisions. A shift away from the diploma as a criterion for hiring and pay decision may influence educational systems to offer both diplomas and skills acquisition programs.
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Systems of pay have, appropriately, been the result of the demands of organisational structure. The complex hierarchical organisations of yesteryear were supported by the equally…
Abstract
Systems of pay have, appropriately, been the result of the demands of organisational structure. The complex hierarchical organisations of yesteryear were supported by the equally complex “factor analysis” system of pay administration. As organisational structures evolved into flatter, simpler designs, so pay systems became less complex. But now organisations are changing in a very fundamental way. They may appear to have little structure at all. They may just grow to meet the current needs; their structure has become organic. Likewise, pay systems will have to adapt. The author discusses traditional methods of pay for the job, pay for skills and incentives as well as team pay in light of the demands of the organic organisation. Ultimately it appears that pay, as a separate system within HR may disappear altogether. Organisations will move toward attracting, rewarding and retaining their employees through the design of a highly individualised “HR Environment”.
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Samantha A. Conroy, Nina Gupta, Jason D. Shaw and Tae-Youn Park
In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the…
Abstract
In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the past two decades and much progress has been made in terms of understanding its consequences for individual, team, and organizational outcomes. Our review of this research exposes several levels-related assumptions that have limited theoretical and empirical progress. We isolate the issues that deserve attention, develop an illustrative multilevel model, and offer a number of testable propositions to guide future research on pay structures.
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Rachana Jaiswal, Shashank Gupta and Aviral Kumar Tiwari
Amidst the turbulent tides of geopolitical uncertainty and pandemic-induced economic disruptions, the information technology industry grapples with alarming attrition and…
Abstract
Purpose
Amidst the turbulent tides of geopolitical uncertainty and pandemic-induced economic disruptions, the information technology industry grapples with alarming attrition and aggravating talent gaps, spurring a surge in demand for specialized digital proficiencies. Leveraging this imperative, firms seek to attract and retain top-tier talent through generous compensation packages. This study introduces a holistic, integrated theoretical framework integrating machine learning models to develop a compensation model, interrogating the multifaceted factors that shape pay determination.
Design/methodology/approach
Drawing upon a stratified sample of 2488 observations, this study determines whether compensation can be accurately predicted via constructs derived from the integrated theoretical framework, employing various cutting-edge machine learning models. This study culminates in discovering a random forest model, exhibiting 99.6% accuracy and 0.08° mean absolute error, following a series of comprehensive robustness checks.
Findings
The empirical findings of this study have revealed critical determinants of compensation, including but not limited to experience level, educational background, and specialized skill-set. The research also elucidates that gender does not play a role in pay disparity, while company size and type hold no consequential sway over individual compensation determination.
Practical implications
The research underscores the importance of equitable compensation to foster technological innovation and encourage the retention of top talent, emphasizing the significance of human capital. Furthermore, the model presented in this study empowers individuals to negotiate their compensation more effectively and supports enterprises in crafting targeted compensation strategies, thereby facilitating sustainable economic growth and helping to attain various Sustainable Development Goals.
Originality/value
The cardinal contribution of this research lies in the inception of an inclusive theoretical framework that persuasively explicates the intricacies of a machine learning-driven remuneration model, ennobled by the synthesis of diverse management theories to capture the complexity of compensation determination. However, the generalizability of the findings to other sectors is constrained as this study is exclusively limited to the IT sector.
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The purpose of this study is to explore how the employees and managers experienced skill-based pay (SBP) plans through the lens of the organizational justice perspective. The…
Abstract
Purpose
The purpose of this study is to explore how the employees and managers experienced skill-based pay (SBP) plans through the lens of the organizational justice perspective. The article investigates SBP plans and highlights the difficulties encountered in implementing them. SBP plans take a number of different forms that may diverge from the declared model.
Design/methodology/approach
This study investigates the SBP plan implementation in situ. Following Yin’s case study design method, documents were collected, semi-structured interviews were conducted and observations were recorded in two different companies in France.
Findings
The organizational justice concepts allow the authors to shed light on the mechanisms through which SBP implementation may lead to negative outcomes. First, the authors argue that injustice perceptions are a critical element in the SBP implementation. Second, they argue that the way SBP plans are implemented by front-line managers influence employee attitudes and behaviours. When employees consider that the decisions are established on the basis of criteria that lack legitimacy, they adopt withdrawal behaviour.
Research limitations/implications
The majority of studies on SBP are largely atheoretical in nature. It is suggested that the organizational justice framework should be utilized to improve the authors’ understanding of what shapes the reaction of workers towards such plans. The authors consider that justice and trust are a particularly useful duo of lenses through which to examine the motivation of workers to be engaged in such plans.
Practical implications
The implications for the practice of management surround the issue of unanticipated results of actions. It is not simply a question of designing the most appropriate SBP plans. The key issue is how they are actually implemented by front-line managers. Specifically, the findings highlight the pivotal role front-line managers play in building trust towards employees. Training in procedural justice should accompany SBP implementation.
Originality/value
This paper highlights the complexity of implementation of SBP. By examining SBP implementation through the lenses of the organizational justice concepts, it sheds light on the under-theorized reactions to SBP implementation, and advances understanding of the mechanisms through which it affects employee attitudes and behaviours.
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Teams have become a popular way to organize business because they offer companies the flexibility needed to meet the demands of the changing business environment. While many…
Abstract
Teams have become a popular way to organize business because they offer companies the flexibility needed to meet the demands of the changing business environment. While many companies have been quick to organize their workforce into teams, they have not been as eager to implement team‐based compensation systems. However, if team‐based organizations continue to utilize old, individually‐oriented pay systems, they will not fully realize the benefit of highly cooperative and motivated work teams. The purpose of this two‐part article is to examine the “ideal” team compensation system. Together, both parts will review the basics of both teams and compensation and then explore the ideal team compensation system from three levels ‐ framework, critical elements, and other, operational considerations. Part I provided information through the ideal team compensation system framework. This article, Part II, looks at the critical elements and other, operational considerations.
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Mark M. Oleksak and Brian H. Kleiner
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…
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.
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This special “Anbar Abstracts” issue of Employee Relations is split into seven sections covering abstracts under the following headings: Design of Work; Performance, Productivity…
Abstract
This special “Anbar Abstracts” issue of Employee Relations is split into seven sections covering abstracts under the following headings: Design of Work; Performance, Productivity and Motivation; Patterns of Work; Pay, Incentives and Pensions; Career/Manpower Planning ; Industrial Relations and Participation; Health and Safety.