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Why are your reward strategies not working? The role of shareholder value, country context, and employee voice

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  • Kornelakis, Andreas

Abstract

This article suggests that when reward strategies fail, it is because they are frequently subsumed to a meaningless search for a best practice that delivers shareholder value that could be applied uniformly across countries, sectors, or workplace contexts. For instance, executive compensation schemes incorporating stock options are focused too much on delivering value for shareholders, and ignore other important stakeholders such as employees. Flexible benefits schemes tend to be designed and implemented top-down, without employee involvement or customizing them to meet their needs. I argue that reward practices should move away from shareholder-value reward to stakeholder reward, making full use of employee voice mechanisms as a key ingredient of workplace innovation. I consider the case of shared capitalism practices and outline the benefits of broad-based employee ownership schemes. This article concludes by offering prescriptive advice for the application of such schemes to enhance productivity and boost employee satisfaction.

Suggested Citation

  • Kornelakis, Andreas, 2018. "Why are your reward strategies not working? The role of shareholder value, country context, and employee voice," Business Horizons, Elsevier, vol. 61(1), pages 107-113.
    • Handle: RePEc:eee:bushor:v:61:y:2018:i:1:p:107-113
    DOI: 10.1016/j.bushor.2017.09.010
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    References listed on IDEAS

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    5. Tony Edwards & Rocío Sánchez-Mangas & Patrice Jalette & Jonathan Lavelle & Dana Minbaeva, 2016. "Global standardization or national differentiation of HRM practices in multinational companies? A comparison of multinationals in five countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(8), pages 997-1021, October.
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    2. Wojciech Przychodzen & Fernando Gómez-Bezares, 2021. "CEO–Employee Pay Gap, Productivity and Value Creation," JRFM, MDPI, vol. 14(5), pages 1-17, April.
    3. Kuo-Jui Wu & Qing Chen & Yun Qi & Xiaoyue Jiang & Shuo Gao & Ming-Lang Tseng, 2019. "Sustainable Development Performance for Small and Medium Enterprises Using a Fuzzy Synthetic Method-DEMATEL," Sustainability, MDPI, vol. 11(15), pages 1-25, July.
    4. Xiaobo Wang & Zhishan An & Caixia Zhang, 2023. "Identifying Crucial Attributes of Sustainable Operation for Scientific Instrument Platforms With a Fuzzy Synthetic Cause-Effect Model," SAGE Open, , vol. 13(3), pages 21582440231, August.

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