Compensation profiles among private sector employees in Sweden: Differences in work-related and health-related outcomes

How experiences and perceptions of pay and pay setting relate to employees' job performance, willingness to remain in the organization, and health has been the subject of much debate. Previous research has typically used a variable-centered approach to investigate associations between different pay-related factors and such outcomes. In contrast, we used latent profile analysis to explore combinations of compensation characteristics (pay level, perceived horizontal pay dispersion, and procedural quality, i.e., transactional leadership and procedural pay-setting justice), combining relevant theories on the subject. Based on a nationally representative sample of private sector employees in Sweden (N = 1,146), our study identified six compensation profiles. Our key findings show, first, that higher levels of pay were generally associated with better performance, lower turnover intention, better self-rated health, and lower work-related exhaustion, especially when combined with perceptions of high procedural quality. Second, in terms of perceived horizontal pay dispersion, the results indicate that pay compression may be associated with beneficial outcomes, particularly when combined with high procedural quality. Third, procedural quality was generally associated with favorable work-related and health-related outcomes, although such positive effects may be contingent upon pay level and perceived horizontal pay dispersion. In conclusion, while pay level, perceptions of horizontal pay dispersion, and procedural quality may all matter for employee outcomes, it is important to consider their combinations.

Correlation between Employee Performance, Well-Being, Job Satisfaction, and Life Satisfaction in Sedentary Jobs in Slovenian Enterprises

The purpose of this study was to explore the relationship between employees' work performance and their well-being, job satisfaction, and life satisfaction in sedentary jobs in Slovenian enterprises using a mixed-methods research design. The quantitative component of the research included the responses to four selected questionnaires of 120 employees in 22 identified enterprises (out of 81), with more than 20 employees, having more than 85 percent sedentary jobs. Each of four questionnaires was chosen to cover one area of enquiry under the research foci of work performance, job satisfaction, life satisfaction and well-being. The statistical program STATA was used for data analyses. The analysis shows statistically significant positive correlations between employee performance and job satisfaction (r = 0.35), employee performance and life satisfaction (r = 0.28), life satisfaction and well-being (r = 0.33), and job satisfaction and well-being, whereas the correlation between well-being and work performance did not prove to be statistically significant. The qualitative component of the mixed-methods research design included systematic observation combined with one-to-one discussions. The results indicated that job satisfaction and life satisfaction are more significant in determining work performance in sedentary jobs than employee well-being and that being unwell is still considered a sign of weakness; therefore, employees who are unwell do not want to expose themselves and refuse to cooperate in activities and studies about well-being. Further research examining the impact on work performance of organizational climate measurements in sedentary jobs is recommended.

"Here's Some Money, Your Work's So Worthy?" A Brief Report on the Validation of the Functional Meaning of Cash Rewards Scale

In the present research, we validated a new scale developed from self-determination theory (SDT) to assess the functional meaning of cash rewards offered in the workplace. According to SDT, rewards can take on different meanings based on the way they are perceived by individuals. In a series of three studies in different socioeconomic contexts, we replicated the two-factorial structure of the scale measuring respectively workplace cash rewards’ informative and controlling meanings. In Study 1, we validated the English version of the scale by exploring and then confirming its two-factor structure with two English-speaking employee samples. We further replicated its two-factor structure in a French-speaking employee sample of employees in Study 2 and in a Greek-speaking employee sample in Study 3, allowing us to validate its French and Greek version. Results from our three studies show how distinct meanings attributed to cash rewards, i.e., informative or controlling, relate differently to autonomous and controlled forms of motivation based on SDT. These findings suggest that workplace cash rewards differently influence employees’ motivation depending on whether they are perceived as informative or controlling, thus providing empirical evidence for the theoretical and practical implications of SDT’s concept of functional meaning of cash rewards. Our research contributes to the assessment and understanding of employees’ experience of workplace cash rewards and provides empirical evidence that the concept of the functional meaning of cash rewards is a distinct concept from other money-related concepts such as subjective pay satisfaction, performance-contingent rewards, and financially contingent self-worth.

The coronavirus disease 2019 (COVID-19) pandemic in nursing homes - the experience of care workers in Poland

Background: Nursing homes in Poland are the most common formal care institutions for dependent people. During the coronavirus disease 2019 (COVID-19) pandemic, nursing homes had particularly high infection rates. In this context, it is important to ask about the experiences of the care workers working in these institutions. Methods: This research was conducted using the computer-assisted web interviewing (CAWI) technique in five provinces in Poland. The field research was carried out in April 2021. The research sample included, among others, nurses, care workers, therapists, social workers and the management staff of institutions whose representatives worked during the COVID-19 pandemic. Respondents were asked to assess the care provided to residents. Results: It turned out that the vast majority of respondents positively assessed the fulfillment of the basic living needs of residents and the availability of care. The assessment of the organization of residents' leisure time, the fulfillment of their religious and cultural needs, and the issue of maintaining contacts with the social environment was less satisfactory. The article also describes the results of care institution employees' self-assessment of their mental health. For the majority, the most stressful factor was the need to work in a health-threatening environment and the sense of responsibility for the residents. Regarding the availability of the forms of support offered to workers experiencing deteriorating mental health due to working in the pandemic situation, more than a third said that their institution did not offer any form of assistance. Conclusions: The article lists a number of recommendations. In the light of the data obtained, it is necessary to increase the intensity of services provided to residents of nursing homes in terms of organizing their free time, meeting their religious and cultural needs and maintaining contact with the social environment.

Creativity-Contingent Rewards, Intrinsic Motivation, and Creativity: The Importance of Fair Reward Evaluation Procedures

Pay for performance is a common practice used by organizations to increase employees’ motivation and performance, and creativity-contingent rewards have been shown to support creativity. But are all creativity-contingent rewards equal? Procedural justice can potentially affect the way that creativity-contingent rewards impact employees’ intrinsic motivation and creativity. To shed light on this practice-relevant issue, this study investigates how aspects of procedural justice—reward allocation clarity and reward evaluation fairness—impact changes in intrinsic motivation and creativity in the presence of creativity-contingent rewards. Using an incomplete factorial pretest–posttest between subjects design with four reward conditions and one control (no reward) condition, I analyzed changes in intrinsic motivation and creativity. Relative to the control condition, significant increases in both intrinsic motivation and creativity were found in the reward conditions with high evaluation fairness. However, reward allocation clarity did not yield any significant effects on changes in intrinsic motivation and creativity. The results highlight the importance of fair evaluation procedures for determining rewards if creativity-contingent rewards are to increase both intrinsic motivation and creativity.

Individual variable pay for performance, controlling effects, and intrinsic motivation

A core question in research on compensation and motivation is whether individual variable pay for performance (IVPFP) can undermine intrinsic motivation in the workplace. We investigated the mediating role of a controlling effect on the relationship between the amount of IVPFP received and intrinsic motivation. In a three-wave study of 304 employees from eight European countries, we found that a controlling effect mediated the negative association between IVPFP and intrinsic motivation. These findings support the proposition from self-determination theory that financial rewards can have a controlling effect that decreases intrinsic motivation. Theoretical and practical implications for compensation and motivation in the workplace are discussed.

Innovative behaviour of knowledge workers and social exchange attributes of financial incentive: implications for knowledge management

Purpose

Enhancing the innovative behaviour of knowledge workers is a main task in knowledge management. The pay-for-performance policy is one of the management practices for innovative behaviour enhancement and has been gaining popularity in the knowledge-intensive context. However, it is still uncertain whether such practice really enhances the innovative behaviour of knowledge workers. To address this issue, this paper aims to propose and verify a conceptual framework incorporating kernel notions of social exchange, psychological empowerment and work engagement rooted in the social cognition paradigm.

Design/methodology/approach

The current study conducts a survey on 608 knowledge workers and their supervisors, validating the model structure and causal path pattern of the proposed framework. The causality is delineated from social exchange attributes of financial incentive, psychological empowerment and work engagement to innovative behaviour of knowledge workers.

Findings

Perceived organisational support and perceived pay equity are primary antecedents of symbolic incentive meaning reflected in the financial incentive of the pay-for-performance policy. Symbolic incentive meaning comprising dimensions of relative position, control and personal importance relates positively to innovative behaviour of knowledge workers. Psychological empowerment and work engagement are partial mediators of the positive relationship.

Originality/value

The current study explicates why and how social exchange attributes of the financial incentive provided by the pay-for-performance policy may enhance innovative behaviour of knowledge workers. Implications are supplied to knowledge management scholars and practitioners to optimise the pay-for-performance policy for innovative behaviour enhancement.