Talent Management in the Social Sector : A Review of Compensation and Motivation

This article is based on a systematic literature review of compensation practices and motivation processes in social sector organisations. The review is divided into two main sub-sections- compensation and motivation. The review of the compensation literature provides a holistic understanding of the factors (classified into organisation-level and employee-level) influencing compensation in the social sector. Findings of existing research reveal that compensation influences organisational performance and organisational commitment of employees. Other relevant factors influencing compensation that might need further research are also discussed. The review on motivation research in the social sector gives an understanding of the theories used to understand motivation thereby giving an insight into the factors influencing social sector motivation. Overall, the review indicates that the compensation and motivation literature is concentrated in North America and Europe. Moreover, the literature largely considers social sector organisations as one distinct category. However, social sector organisations widely differ across themselves in structure and functions. These overlooked differences between organisations in the social sector pose obstacles to understanding talent in the Indian social sector. We discuss these obstacles and suggest recommendations for practitioners and future researchers