Advanced Search
MyIDEAS: Login to save this paper or follow this series

The relevance of size, gender and ownership for performance-related pay schemes

Contents:

Author Info

  • Jan de Kok
  • A. Roepers

Abstract

With performance-related pay, the reward for an employee is partly dependent upon its own performance and/or on the performance of the organisation. In the Netherlands, performance-related pay is being implemented in SMEs an increasing scale. Currently, about 25% of Dutch SMEs make use of some kind of performance-related pay scheme, which may include profit sharing, bonuses, gratuities and stock options.� The aim of this study is to increase our understanding of the usage of performance-related pay schemes in Dutch small and medium-sized enterprises. In particular, we examine whether firm size, ownership structure, and gender of the entrepreneur and employees predict the presence of performance-related pay schemes. The results show that larger SMEs are more likely to use performance-related pay than smaller SMEs (as can be expected). We also find strong support for the presence of a gender effect. The results indicate that for male entrepreneurs, the use of performance-related pay is independent of the gender composition of the work force. For female entrepreneurs, we find that the usage of performance-related pay increases with the share of male employees. This relationship is such, that for firms where more than 70% of the workforce is male, female entrepreneurs are more likely to apply performance-related pay then male entrepreneurs. A possible explanation is that female entrepreneurs are more inclined to take the preferences of their employees into account when they determine the compensation scheme of their enterprise. Finally, the ownership structure also seems to matter. The results suggest that we should differentiate between (at least) three different ownership structures: single-owned and managed firms, family firms (firms with multiple owners that have family ties between them), and multiple-owned non-family firms. Once we do so, we find that single-owned and managed firms are just as likely to use performance-related pay schemes as family firms. Both types of firms use performance-related pay significantly less often than multiple-owned non-family firms. �

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H200722.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200722.

as in new window
Length: 45 pages
Date of creation: 21 Dec 2007
Date of revision:
Handle: RePEc:eim:papers:h200722

Contact details of provider:
Postal: P.O. Box 7001, 2701 AA Zoetermeer
Phone: (+31) 79 341 36 34
Fax: (+31) 79 341 50 24
Email:
Web page: http://www.entrepreneurship-sme.eu/
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eim:papers:h200722. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster EIM).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.