A Global Study of Pay Preferences and Employee Characteristics

Published on Mar 1, 2015in Compensation & Benefits Review
· DOI :10.1177/0886368715598197
Dow Scott7
Estimated H-index: 7
(LUC: Loyola University Chicago),
Michelle Brown17
Estimated H-index: 17
(University of Melbourne)
+ 5 AuthorsStephen J. Perkins10
Estimated H-index: 10
(London Metropolitan University)
Companies are managing more diverse work forces, and pay systems must be designed to attract, retain and motivate employees who may have very different pay preferences from employees of even a decade ago. This study examines how employee characteristics (i.e., gender, age, education, work experience, annual pay and number of dependents) are related to pay preferences. We found that older respondents with more education and more dependents had a stronger preference for variable pay than did respondents who were younger, less educated and had fewer dependents. Older respondents and those with higher pay preferred less pay transparency than did younger and lower paid respondents. Pay differences based on capability were preferred by better educated employees. When controlling for the other demographic characteristic, we found significant differences among nationalities for all four measures of pay preferences, that is, pay differences, pay variability, bonus plans and pay transparency.
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Cited By4
Michal Biron13
Estimated H-index: 13
(University of Haifa),
Hagar Hanuka1
Estimated H-index: 1
(University of Haifa)
ABSTRACTResearch on gender differences in the effects of non-cognitive traits and behaviours on pay is rather scant and focuses largely on the big five personality traits. To address this gap, we consider the equivocal findings regarding the direct associations of intrinsic motivation, self-efficacy, and networking with pay, arguing for gender differences in the degree to which actual pay and pay expectations are influenced by these non-cognitive factors. Hypotheses are tested using a sample of ...
Published on Jun 13, 2016
S. Shortland10
Estimated H-index: 10
(London Metropolitan University),
Stephen J. Perkins10
Estimated H-index: 10
(London Metropolitan University)
Purpose – Drawing upon compensating differentials, equity theory, and the psychological contract, women’s voices illustrate how organisational policy dissemination, implementation and change can lead to unintended assignee dissatisfaction with reward. Implications arise for organisational justice which can affect women’s future expatriation decisions. The paper aims to discuss these issues. Design/methodology/approach – A qualitative case study methodology was employed. Reward policies for long-...
Published on Jan 1, 2016
Ge Bai8
Estimated H-index: 8
Ranjani Krishnan
We distinguish ambiguous common uncertainty (with unknown probability distribution) from risky common uncertainty (with known probability distribution) and examine how employee preference for relative performance contracts differs between the two conditions. Using economics and psychology theory in decision making under uncertainty, we hypothesize that (i) preference for relative performance contracts is low (high) when common uncertainty is ambiguous (risky); and (ii) confidence mediates the re...
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