Using Optional Job Rotation Programs to Gauge On-the-Job Learning
This paper presents one reason for adopting diverse work assignments, rooted in a desire to match employees' pay with the skills they have cultivated on the job. When on-the-job learning parlays into attractive external opportunities, employees may threaten to seek a different and higher paying job elsewhere. By instituting an optional job rotation program, a firm can offer such an opportunity internally. Since new tasks are difficult for employees to undertake, compensation arrangements can be structured to guarantee that only a truly skilled (versatile) employee wants to take on such a challenge.
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Volume (Year): 162 (2006)
Issue (Month): 3 (September)
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- Metin M. Cosgel & Thomas J. Miceli, 1999. "Job Rotation: Cost, Benefits, and Stylized Facts," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(2), pages 301-301, June.
- Anil Arya, 2004. "Using Job Rotation to Extract Employee Information," Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(2), pages 400-414, October.
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