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The Impact of Compensation Scheme on Housing Agent Performance

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  • Chun-Chang Lee

Abstract

This paper discusses the impact of compensation schemes on housing agent performance. This study treats housing agents as subjects and distributed 867 questionnaires by mail. A total of 776 responses were retrieved, of which 510 were effective samples for a valid return rate of 66.5%. The feasible generalized least squares (FGLS) method was used for estimation. According to the empirical results, the individual performance of agents under a Type I compensation scheme, which is similar to the Japanese model of a high base salary and a low proportion of compensation based on performance, is not significantly better than the individual performance of agents under a Type II compensation scheme, which is similar to the American model of zero base salary and a high proportion of compensation based on performance. The empirical results suggest that in recent years, compensation schemes in Taiwan’s brokerage industries have gradually shifted from the Japanese model with a high base salary to the American model without a base salary.

Suggested Citation

  • Chun-Chang Lee, 2012. "The Impact of Compensation Scheme on Housing Agent Performance," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 2(12), pages 2150-2161.
    • Handle: RePEc:asi:ijoass:v:2:y:2012:i:12:p:2150-2161:id:2381
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