Documents performance related pay 107 results

"We conduct a field experiment among 189 stores of a retail chain to study dynamic incentive effects of relative performance pay. Employees in the randomly selected treatment stores could win a bonus by outperforming three comparable stores from the control group over the course of four weeks. Treatment stores received weekly feedback on relative performance. Control stores were kept unaware of their involvement, so that their performance generates exogenous variation in the relative performance of the treatment stores. As predicted by theory, we find that treatment stores that lag far behind do not respond to the incentives, while the responsiveness of treatment stores close to winning a bonus increases in relative performance. On average, the introduction of the relative performance pay scheme does not lead to higher performance."

"We present a model in which workers with greater ability and greater risk tolerance move into performance pay jobs to capture rents and contrast it with the classic agency model. Estimates from the German Socio-Economic Panel confirm testable implications drawn from our model. First, before controlling for earnings, workers in performance pay jobs have higher job satisfaction, a proxy for on-the-job utility. Second, after controlling for earnings, workers in jobs with performance pay have the same job satisfaction as those not in such jobs. Third, those workers in performance pay jobs who have greater risk tolerance routinely report greater job satisfaction. While these findings support models in which workers capture rent, they would not be suggested by the classic agency model."

"Using German survey data, we show in worker fixed effects estimates that performance pay is associated with a substantially lower gender hours gap. While performance pay increases the work hours of both men and women, the increase is much larger for women than for men. We argue that our finding likely reflects differences in household production and specialization by gender. Thus, we show that performance pay is not associated with increased hours for men with children in the household. Yet, performance pay is associated with a very large increase in hours for women with children in the household."

This work is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/).

"Vor etwas mehr als zehn Jahren begann die Einführung der reformierten Entgeltrahmenabkommen (ERA) in der Metall- und Elektro- (M+E) Industrie. Der Beitrag beschreibt Langzeiteffekte dieser Tarifreform in der M+E-Industrie Baden-Württembergs. Die präsentierten Befunde basieren im Wesentlichen auf einer im Spätherbst 2015 durchgeführten standardisierten Parallelbefragung von Betriebsräten und Personalverantwortlichen aller tarifgebundenen Betriebe der M+E-Industrie in Baden-Württemberg sowie ausgewählten Ergebnissen der jährlich durchgeführten Verdiensterhebung von Südwestmetall. Im Ergebnis zeigt sich: ERA ist weiterhin prägend für die betriebliche Entgeltdifferenzierung und erfüllt die ihm zugedachte Ordnungsfunktion. Eine erneute schleichende innere Erosion des Tarifvertrags ist bisher nicht eingetreten. Im Leistungsentgelt werden die erweiterten tariflichen Möglichkeiten kaum genutzt. Zielvereinbarungen spielen im Tarifbereich nur in Kombination mit der Leistungsbeurteilung eine gewisse Rolle. Der vereinbarte Systemwechsel in der Belastungsbewertung bzw. -vergütung ist akzeptiert und zeigt positive Effekte auch hinsichtlich des Abbaus von Belastungen."

"The use of supplementary employee reward systems has increased across Europe in recent decades, both in terms of the number of companies using them and the number of employees covered. Supplementary reward systems include performance-related pay, profit-sharing, payment by results and benefits in kind. These forms of remuneration can help to motivate and reward workers and to link pay to company results. This report examines the different types of supplementary pay schemes, their prevalence in different countries and sectors across the EU and Norway, and their relevance to different groups of employees. It also examines how systems are regulated in each country, how far they are integrated into collective agreements, and the views of social partners."