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Optimizing Incentive Plan Design: A Case Study
Levenson, Alec; Zoghi, Cindy; Gibbs, Michael; Benson, George - Institute for the Study of Labor (IZA) - 2011
We study effects of a firm's attempt to optimize an existing incentive scheme to increase sales growth for direct store delivery workers. Before optimization workers reported Ratchet Effects that lowered productivity. The altered incentive plan offered higher compensation for increased sales...
Persistent link: https://www.econbiz.de/10009323407
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Design and Implementation of Pay for Performance
Gibbs, Michael - Institute for the Study of Labor (IZA) - 2012
A large, mature and robust economic literature on pay for performance now exists, which provides a useful framework for thinking about pay for performance systems. I use the lessons of the literature to discuss how to design and implement pay for performance in practice.
Persistent link: https://www.econbiz.de/10009646325
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Base Salaries, Bonus Payments, and Work Absence among Managers in a German Company
Pfeifer, Christian - Institute for the Study of Labor (IZA) - 2012
Questions about compensation structures and incentive effects of pay-for-performance components are important for firms' Human Resource Management as well as for economics in general and labor economics in particular. This paper provides scarce insider econometric evidence on the structure and...
Persistent link: https://www.econbiz.de/10010675505
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Can Higher Bonuses Lead to Less Effort? Incentive Reversal in Teams
Klor, Esteban F.; Kube, Sebastian; Winter, Eyal; … - Institute for the Study of Labor (IZA) - 2011
Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In … with positive externalities between agents, incentive reversal might occur: an increase in monetary incentives (either …
Persistent link: https://www.econbiz.de/10008839289
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Employee Stock Purchase Plans: Gift or Incentive? Evidence from a Multinational Corporation
Bryson, Alex; Freeman, Richard B. - Institute for the Study of Labor (IZA) - 2014
Many large listed firms offer workers the opportunity to buy shares in the firm at discounted rates through employee stock purchase plans (ESPP). The discounted rate creates a gift exchange, where the firm hopes that workers who accept the gift reciprocate with greater loyalty and effort. But...
Persistent link: https://www.econbiz.de/10010959665
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Redesigning Teams and Incentives in a Merger: An Experiment with Managers and Students
Montmarquette, Claude; Rullière, Jean-Louis; Villeval, … - Institute for the Study of Labor (IZA) - 2004
with managers from companies with different incentives, work habits and recruiting methods. In this paper, we investigate …, which occur in both compensation incentives and team composition. The results of a real effort experiment conducted with … managers within a large pharmaceutical company not only show that changes in compensation incentives affect performance but …
Persistent link: https://www.econbiz.de/10005703548
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Promotions and Incentives: The Case of Multi-Stage Elimination Tournaments
Altmann, Steffen; Falk, Armin; Wibral, Matthias - Institute for the Study of Labor (IZA) - 2008
Promotion tournaments play an important role for the provision of incentives in firms. In this paper, we extend …
Persistent link: https://www.econbiz.de/10005703555
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Performance Pay and Multi-dimensional Sorting: Productivity, Preferences and Gender
Dohmen, Thomas; Falk, Armin - Institute for the Study of Labor (IZA) - 2006
This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. In a first …
Persistent link: https://www.econbiz.de/10005703774
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Performance Pay and Risk Aversion
Grund, Christian; Sliwka, Dirk - Institute for the Study of Labor (IZA) - 2006
A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in …
Persistent link: https://www.econbiz.de/10005822413
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Self-Selection and the Efficiency of Tournaments
Eriksson, Tor; Teyssier, Sabrina; Villeval, Marie-Claire - Institute for the Study of Labor (IZA) - 2006
When exogenously imposed, rank-order tournaments have incentive properties but their overall efficiency is reduced by a high variance in performance (Bull, Schotter, and Weigelt 1987). However, since the efficiency of performance-related pay is attributable both to its incentive effect and to...
Persistent link: https://www.econbiz.de/10005763542