TL;DR: This article explores the resurgence of skill-based pay in the UK, driven by labour shortages and skill demands, and examines its application in various forms, drawing conclusions for practical implementation and future research in the 2020s.
Abstract: Skill-based pay (SBP) has had a long but chequered history. However, interest in it has intensified recently in the UK, largely as a result of labour shortages and increasing and often unsatisfied demands for skills, which prevailing market-driven approaches to compensation have failed to address. It has become evident that SBP can provide a useful means of supporting organisations to attract, retain, develop and engage the increasing numbers and range of skilled people they need to grow and succeed. In this article we describe the current context within which SBP is being developed; review the historical development of the approach and then illustrate the increasingly varied range of methods now being taken to how SBP is being applied in the UK; and draw some tentative conclusions from our analysis for SBP’s practical application, along with implications for future research.
Irene van de Glind, Roos Mulder, Agnes Akkerman, Mieke van der Biezen, Jael Bootsma, Evelyn Finnema, Lex Heerma van Voss, Niek Mouter, Jos van Rooij, Geertje van de Ven
TL;DR: This scoping review of 199 articles on job evaluation methods reveals changing research topics over decades, from methodological questions to adapting methods to specific contexts, with a decline in research since 2010, recommending a revival of scientific research.
Abstract: Since the 1940’s, job evaluation methods are being used to establish the relative value of jobs within organizations in order to determine salaries. Job evaluation methods have been studied, but there has not been much systematic reflection on the research conducted so far. This scoping review of 199 articles demonstrates that topics changed over decades, starting with methodological questions in the 1940’s, reflecting a start-up period. Historic overviews on wage policies appeared in the 1960’s, and the topic of gender wage inequality in the 1980’s. Guidelines were published in the 1990’s. From 2000 onwards, the main topic was adapting job evaluation methods to specific contexts. Research declined since 2010. There was hardly any research on appending changes in job evaluation methods and criteria. Given the ever-changing nature of work and the upcoming demographic changes, we recommend to revive scientific research on job evaluation and propose an agenda with research questions.
TL;DR: This study develops the Pay Information Awareness Questionnaire (PIAQ), a comprehensive multi-dimensional framework and measurement scale for pay transparency, founded on employee awareness perceptions of pay information, to facilitate future research on this important topic.
Abstract: Pay transparency has drawn substantial attention from scholars in recent years, resulting in an expanding body of knowledge on this important topic. However, the literature has developed in a fragmented manner with an array of labels and conceptualizations across several largely disconnected dimensions. Pay transparency measurement scales have also emerged in a piecemeal fashion and lack cohesion in the operationalization of pay transparency dimensions. The current research develops a more cohesive and comprehensive multi-dimensional pay transparency framework and measurement scale. The paper reviews and integrates the pay transparency literature into a coherent, multi-dimensional framework founded on employee awareness perceptions of pay information rather than on objective organizational actions or employee behaviors. Following established scale development techniques, the present study creates and validates a multi-dimensional pay information awareness scale that may serve to facilitate future research on pay transparency. Implications are discussed, along with limitations and directions for future research.
TL;DR: This study examines marketing managers' decision-making processes during unsuccessful campaigns, revealing a multifaceted landscape influenced by data, compensation, cognitive biases, and personal motivations, with unrealistic compensation aspirations often prioritized over objective data.
Abstract: This study examines marketing managers’ decision-making processes when initiating, conducting, or terminating a failed marketing campaign, focusing on the interplay between market data, compensation, personal motivations, and cognitive biases. We conduct qualitative interviews with marketing managers in various industries to explore their experiences with unsuccessful marketing campaigns. Our findings reveal a multifaceted decision-making landscape in which marketing managers must weigh empirical data against compensation and cognitive bias. There are 4 phases of a typical unsuccessful marketing campaign: Aspiration, recognition of failure, professional self-doubt, and recovery. This study demonstrates that unrealistic compensation aspiration can significantly sway decisions, often at the expense of objective data. Furthermore, making the wrong decision can result in severe psychological repercussions, affecting not only managers’ lives but also impacting their families. The study contributes to the literature by articulating the multifaceted nature of marketing decision-making and proposing a balanced approach that accommodates both rational and emotional factors. By recognizing the influence of personal motivations and cognitive biases, this study emphasizes the importance of developing decision-making tools that integrate emotional intelligence with data-driven insights.
TL;DR: This study examines nonprofit CEO compensation, integrating social and performative aspects of governance, and finds that ethno-racialized CEOs receive higher compensation when their organizations have diverse boards, highlighting the importance of board composition and diversity.
Abstract: Using secondary data collected as part of a national survey of nonprofit organizations, this research examines compensation outcomes of 704 nonprofit Chief Executives (CEO), integrating and social and performative aspects of governing/governance to explain compensation (in)equity. Theorizing governance as a socially complex and functionally consequential arena, we examine the impact of social categorization and identity fit between CEO Ethno-Racial Demography and Board Ethno-Racial Variety prior to overlaying the influence of three forms of governance activity: Fiduciary Oversight, Internal Awareness, and External Engagement. We employ serial multiple mediation regression analysis to test direct and indirect effects of demographic diversity and governance activity for nonprofit CEO compensation outcomes. We found compensation of ethno-racialized CEOs is higher when their organizations have diverse boards. Therefore, boards of directors must be cognizant of board composition, the potential for subjectivity and bias, and the impact these factors can have on CEO compensation and compensation equity.
TL;DR: This study identifies time, money, and skill barriers to ESOP adoption in US SMBs, proposing a "shared ownership light" model as a more feasible alternative, and recommends tailored services to facilitate employee ownership and value-sharing among SMBs.
Abstract: This research investigates the limited adoption of employee stock ownership plans (ESOPs) among small-to-medium sized businesses (SMBs) in the U.S. Through interviews with 30 SMB owners across various industries, we identify the key barriers to ESOP adoption as lack of time, money, and skills on the part of the owners. In doing so, the study suggests that a “shared ownership light” model, which involves sharing profits, information, and decision-making opportunities with employees, appears more feasible for SMBs than ESOPs. For SMBs that are interested in ESOP adoption, our research suggests that organizations providing employee ownership services could better assist SMBs by offering templatized models and best practices for profit-sharing plans, open-book management, and structured employee participation. The paper aims to broaden the discussion around shared ownership by considering a spectrum of options that have the potential to increase both value creation by and value-sharing among employees.
TL;DR: Post-pandemic layoffs negatively impact employee engagement. Strategic human capital strategies and leadership communication are key to fostering employee engagement and improving organizational outcomes.
Abstract: Purpose: The purpose of this study is to highlight productivity and engagement issues being experienced across industries, subsequent to strategic human capital realignment, in response to changes in the business environment. The linkages among employee engagement as related to leadership communication, work-life balance, and professional development are explored as the discussion draws on previous research examining employee’s organizational behavior to leadership response within the midst of exceptional events. Design/Methodology/Approach: The authors draw upon 15+ years in general management, communications consultant, and research in organizational behavior. Findings: Research shows that the restoration of trust and a path to creating an organizational culture which invites job engagement through organizational commitment are paramount. The combination of specific strategies coupled with organizational resource management during crises such as rapid and massive layoffs, change, and uncertainty indicates the necessity for tenacity with adaptability facilitated by strategic leadership communication of a shared vision. It will be important for organizational leaders to consider human capital investment strategies that can boost engagement. Practical Implications: Within the context of uncertainty organizational leaders must communicate empathy with employees and examine how much of a role an individual’s perceived career mobility and skill competence plays in strengthening their work engagement. Employees with positive work-life balance can exercise resilience, creativity, and tenacity. As organizations tackle the varying factors related to employee retention and engagement, they should implement strategies that not only retain employees but equip them with the characteristics that define psychological capital within the future of work. Post-pandemic organizational behavioral practices must empower employees to obtain a work lifestyle that allows them to feel in control of their personal and professional trajectories. Originality/value: The current study contributes to the stream of literature on layoff anxiety, productivity issues, and the role leadership communication and human capital strategies play in bolstering employee engagement. Furthermore, the current study highlights the importance of strategic leadership communication as organizations grapple with the challenges of a post layoff exercise, such as, how to increase productivity, engagement, retention, adaptability to the future of work, and profitability for long term growth.
TL;DR: Sabbatical leave can be a cost saver for businesses by reducing search and hiring costs.
Abstract: Sabbatical leave is a benefit that is commonly associated with higher education but is rarely found in the private sector. The benefits that a sabbatical provides a professor, the opportunity to “recharge and refresh” and return to their responsibilities reinvigorated, would also apply to businesses offering this benefit. In light of the recent COVID disruption, employee claims of “burn-out” and the subsequent resignations of many workers, employee retention is a serious issue for many firms. Search and hiring costs are significant. This study examines the benefits to the firm of offering sabbaticals to their employees. It also provides a framework for businesses to compare search and hiring costs with the costs of a sabbatical program. The numerical example provided demonstrates that avoiding the costs associated with a search could fund an 8-week sabbatical for an employee.
TL;DR: Pay transparency is impacting reward strategies, with organizations focusing on manager training and employee education to improve communication and avoid unintended consequences.
Abstract: This paper examines the results of a global Korn Ferry survey that assessed pay transparency-related market practices. Despite increased attention and pressure from internal and external stakeholders, organizations are still in the early stages of implementing pay transparency strategies. Organizations plan to overhaul their reward communication strategies, with manager training and employee education as the primary focus areas. Managers play a critical role as the first line of communication with employees on their team, and organizations recognize that a significant upskilling effort will be needed to enable them to communicate effectively about pay decisions and avoid unintended consequences. The authors provide considerations for organizations moving toward more transparent pay practices, including clarifying a pay transparency strategy, assessing their current practices, improving compensation programs, aligning their leaders and developing effective rewards communications strategies.