The Impacts of Payment Policy on Performance of Human Resource Market System: Agent-Based Modeling and Simulation of Growth-Oriented Firms

Abstract

The impact of human resource management (HRM) on corporate growth is a crucial research topic, especially for growth-oriented firms. This paper aims to study how different payment policies (such as recruitment and dismissal strategies and payment plans) affect the human resource market system. Based on the HRM characteristics of growth-oriented firms, we develop an agent-based model to simulate the decision-making and interaction behaviors of firms and workers. The system performance is measured by six indicators: the average profit, the profit Gini coefficient, the average output of firms, the average payment, the payment Gini coefficient, and the employment rate of workers. According to the simulation results and statistical analysis, the recruitment plan is the only key factor that significantly impacts all performance indicators other than the employment rate, and companies should pay extra attention to such plans. This study also finds that the changing worker’s payment gap is influenced by industry growth and their abilities, and that the payment cap policy has a positive impact on the development of growth-oriented firms in the startup stage.