This paper provides a research proposal to assess whether financial and other incentives influence the retention of highly performing, desirable employees.
# 106579 | 895 words | 22 sources | APA | 2008 |
Published on Aug 10, 2008 in Business (Human Resources) , Labor Studies (General) , Business (Management) , Psychology (Motivation Studies)
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In this article, the writer notes that there appears to be much controversy in the existing literature over the extent to which financial incentives may be an effective tool in employee retention. In particular there are employees with certain desirable characteristics which companies are particularly interested in retaining. The paper presents a research proposal to assess whether the use of financial incentives is effective as a tool for retaining these desirable employees. The paper explains that the study will be comprised of a self-reporting questionnaire which will consist of two sections. The first section will collect data which will allow for the segregation of respondents into two groups based on possession of highly desirable or less desirable employee characteristics. The second section will collect data relating to the importance of financial incentives to the employee when considering remaining with the company. The writer concludes that it is anticipated that the study will demonstrate that financial incentives are a useful tool in retaining high performing and desirable employees.
From the Paper:"The findings of Trank and colleagues (2002) were that individual pay-for-performance schemes were potentially most effective amongst high achievers. As these high achievers are likely to also be the most desirable employees which a company would wish to retain this then would suggest financial incentives to be an effective tool for retention. Rynes and colleagues (2003) suggest that this is related to the concept that financial incentives may function as a motivator due to an individual being driven by the desire to have a salary which is larger than that of their peers. Rynes suggests that it is the differentiation of pay which is actually the largest motivator for this reason. This then would suggest that high salary alone is not sufficient for retention of desirable staff, but that differentiation according to achievement is crucial. Rynes argues that high achievers would not wish to work in a company in which achievement is not recognized through reward. This would then imply that any company which does not engage in pay-for-performance schemes is likely to lose desirable employees to a company which does operate with financial incentives."
Sample of Sources Used:
- Akdere, M. and Yilmaz, T. (2006). Team performance based compensation plans: Implications for human resources and quality improvement from agency theory perspective. International Journal of Human Resources Development and Management, 6(1): 77-91.
- Barro, J. and Beaulieu, N. (2003). Selection and improvement: Physician responses to financial incentives. NBER Working Paper No. 10017, October 2003.
- Bates, S. (2004). Getting engaged. HR Magazine, 49(2): 44-51.
- Beer, M. and Katz, N. (2003). Do incentives work? The perceptions of a worldwide sample of senior executives. Human Resource Planning, 26(3): 30-44.
- Chiu, R.K., Luk, V.W.-M. and Tang, T.L.-P. (2002). Retaining and motivating employees: Compensation preferences in Hong Kong and China. Personnel Review, 31(4): 402-431.
Cite this Research Proposal:
Employee Retention (2008, August 10) Retrieved October 23, 2014, from http://www.academon.com/research-proposal/employee-retention-106579/
"Employee Retention" 10 August 2008. Web. 23 October. 2014. <http://www.academon.com/research-proposal/employee-retention-106579/>