Open AccessCompensation Managers' Beliefs About Strategies That Affect Compensation Program Goals
Author(s) -
Nancy E. Day
Publication year - 1970
Publication title -
journal of business strategies
Language(s) - English
Resource type - Journals
eISSN - 2162-6901
pISSN - 0887-2058
DOI - 10.54155/jbs.13.1.65-88
Subject(s) - compensation (psychology) , affect (linguistics) , business , consistency (knowledge bases) , perception , order (exchange) , psychology , computer science , social psychology , finance , artificial intelligence , neuroscience , communication
A study was conducted to investigate whether individual compensation program goals of recruitment effectiveness, motivational effectiveness, administrative manageability, cost effectiveness, retaining employees and encouraging poor performers to leave were differentially impacted by eleven compensation strategies. It was found that compensation strategies did have differential effects on perceptions of the effectiveness of the compensation goals. While participation in compensation plan design and internal consistency were the most consistent predictors, there was significant variation in the compensation strategies that were predictive across all effectiveness perception variables. Based on these results, compensation managers should carefully consider the organization’s strategy and desired employee behaviors before designing compensation programs.