Compensation and performance: A review and recommendations for the future

Author:

Fulmer Ingrid Smithey1ORCID,Gerhart Barry2,Kim Ji Hyun3ORCID

Affiliation:

1. School of Labor and Employment Relations University of Illinois at Urbana‐Champaign Champaign Illinois USA

2. Department of Management and Human Resources, Wisconsin School of Business University of Wisconsin‐Madison Madison Wisconsin USA

3. Department of Management and Organisation, NUS Business School National University of Singapore Singapore Singapore

Abstract

AbstractIn this paper, we undertake two primary tasks. First, we describe trends in pay → performance research since 1990. Examining 30+ years allows us to capture the evolution of thinking and methodology over time. For this purpose, we focus on scholarly work appearing inPersonnel Psychology (PP), as well as in theJournal of Applied Psychology(JAP) andAcademy of Management Journal(AMJ). As our second task, we go beyond analysis of broad trends, to take a deeper and more substantive dive into the specific topic of pay for performance (PFP) and related areas (pay dispersion, pay communication/transparency), while at the same time drawing on the broader literature on PFP that goes beyond the three journals listed above. We also discuss pay equity, endogeneity, and international issues. Finally, we suggest practical implications, as well as future research directions.

Publisher

Wiley

Subject

Organizational Behavior and Human Resource Management,Applied Psychology

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