Ownership and size as predictors of incentive plans within Swedish real estate firms

Abstract

PurposeThis paper seeks to investigate the significance of ownership and firm size as predictors of the prevalence of incentive plans in Swedish real estate firms.Design/methodology/approachUsing survey data for two periods (2003 and 2007), a two‐predictor logistic model was fitted to the data to test the relationship between ownership and firm size and the likelihood that a Swedish real estate firm has an incentive plan.FindingsPrivate sector firms are more likely than government sector firms to use incentive plans. The number of employees was not a significant predictor of which firms were likely to have incentive pay.Research limitations/implicationsThere are other determinants of incentive pay that were not covered.Practical implicationsThe absence of incentive pay does not necessarily hamper a firm's ability to attract high‐quality workers if they take a broader view of the concept of reward. In addition, public sector workers may be motivated by factors other than monetary reward.Originality/valueThis is the first study of the determinants of incentive plans for real estate firms in Sweden.