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Incentive Pay Systems and the Management of Human Resources in France and Great Britain

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  • Richard Belfield
  • Salima Benhamou
  • David Marsden

Abstract

Incentive pay systems have undergone major changes in recent decades. This paper investigates use of incentive pay systems in British and French private sector establishments in 2004, focusing on payment-by-results, merit pay, and profit sharing, using British and French workplace surveys: WERS and Réponse. Despite the stereotypes of Britain as a deregulated economy and France as a more coordinated social-market economy, French firms make considerably greater use of incentive pay, and particularly, merit pay. The paper explores the organisational and institutional determinants of this. It finds that personnel economics and management theories explain a significant share of the within country variation in use of incentive pay systems.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0796.

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Date of creation: May 2007
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Handle: RePEc:cep:cepdps:dp0796

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: incentive systems; merit pay; profit-sharing; employer organisation;

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  1. Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-17, August.
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Cited by:
  1. Bayo-Moriones, Alberto & Galdon-Sanchez, Jose Enrique & Martinez-de-Morentin, Sara, 2010. "The Diffusion of Pay for Performance across Occupations," IZA Discussion Papers 4839, Institute for the Study of Labor (IZA).
  2. Neil Conway & Simon Deakin & Suzzanne J. Konzelmann & Héloïse Petit & Antoine Rebérioux & Frank Wilkinson, 2008. "The Influence of Stock Market Listing on Human Resource Managment: Evidence for France and Britain," ESRC Centre for Business Research - Working Papers wp366, ESRC Centre for Business Research.

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