Employee Responses to Compensation Changes: Evidence from a Sales Firm

Autor:	Richard Saouma, Jason Sandvik, Christopher Stanton, Nathan Seegert
Rok vydání:	2021
Předmět:	Labour economics Strategy and Management 0502 economics and business 05 social sciences sense organs Business 050207 economics Management Science and Operations Research skin and connective tissue diseases Productivity 050203 business & management Compensation (engineering)
Zdroj:	Management Science. 67:7687-7707
ISSN:	1526-5501 0025-1909
Popis:	What are the long-term consequences of compensation changes? Using data from an inbound sales call center, we study employee responses to a compensation change that ultimately reduced take-home pay by 7% for the average affected worker. The change caused a significant increase in the turnover rate of the firm’s most productive employees, but the response was relatively muted for less productive workers. On-the-job performance changes were minimal among workers who remained at the firm. We quantify the cost of losing highly productive employees and find that their heightened sensitivity to changes in compensation limits managers’ ability to adjust incentives. Our results speak to a driver of compensation rigidity and the difficulty managers face when setting compensation. This paper was accepted by Lamar Pierce, organizations.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::ddd3f6680b1d07a81b8725a26f0413c7 https://doi.org/10.1287/mnsc.2020.3895 Zobrazit plný text záznamu