IDEAS home Printed from https://ideas.repec.org/a/mth/ijhr88/v10y2020i2p252-279.html

Designing Remuneration Systems of Organizations for Sustainable HRM: The Core Characteristics of an Emerging Field

Author

Listed:
  • Gintautas Radvila
  • Violeta Šilingienė

Abstract

Successful business trends in the 21st century cover new factors where economic viability and sustainability should address not only the economic criterion, but also the human managerial one. This leads to the creation of effective sustainable work systems including remuneration systems as a part of sustainable human resource management. The basic research object of sustainable work systems is work intensity, which covers many possible approaches including remuneration systems of organizations. Effective remuneration systems enhance the performance and contribution of employees by controlling labor cost, motivating employees and involving them in organizational processes. Nevertheless, there is a lack of evidence for the sustainability of both theoretical and empirical research of remuneration systems. This article pursues validating theoretical concepts related to sustainable human resource management (SHRM) and remuneration systems by empirical disclosure of the expression of SHRM principles in the characteristics of remuneration systems. The purpose of this paper is to reveal the characteristics of remuneration systems of organizations in real SHRM in enterprises in Lithuania. In order to achieve this, a qualitative study was conducted using semi-structured interviews with 21 corporate HR managers. The study empirically substantiated the relationship between the principles of sustainable human resource management and remuneration characteristics. Results disclosed that as many as 10 of the 12 SHRM principles allow to identify the remuneration system as a sustainable work system. All the identified characteristics of the remuneration system reveal various principles of SHRM through different features and indicators. Furthermore, it confirms the economic, social and environmental nature of sustainable remuneration systems.

Suggested Citation

  • Gintautas Radvila & Violeta Šilingienė, 2020. "Designing Remuneration Systems of Organizations for Sustainable HRM: The Core Characteristics of an Emerging Field," International Journal of Human Resource Studies, Macrothink Institute, vol. 10(2), pages 252279-2522, December.
    • Handle: RePEc:mth:ijhr88:v:10:y:2020:i:2:p:252-279
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/ijhrs/article/download/17086/13245
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/ijhrs/article/view/17086
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Priscila Ferreira, 2019. "Market competition and executive pay," World of Labour, LISER, pages 115-115, February.
    2. Favilukis, Jack & Lin, Xiaoji, 2016. "Does wage rigidity make firms riskier? Evidence from long-horizon return predictability," Journal of Monetary Economics, Elsevier, vol. 78(C), pages 80-95.
    3. Stephanie Schmitt-Grohé & Martín Uribe, 2016. "Downward Nominal Wage Rigidity, Currency Pegs, and Involuntary Unemployment," Journal of Political Economy, University of Chicago Press, vol. 124(5), pages 1466-1514.
    4. Thanassoulis, John & Tanaka, Misa, 2018. "Optimal pay regulation for too-big-to-fail banks," Journal of Financial Intermediation, Elsevier, vol. 33(C), pages 83-97.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hanna Kinowska, 2021. "Core features for the design of remuneration systems for sustainable human resource management during the Covid-19 pandemic: Polish companies’ experiences," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 389-402, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandro Moro, 2021. "Can capital controls promote green investments in developing countries?," Temi di discussione (Economic working papers) 1348, Bank of Italy, Economic Research and International Relations Area.
    2. Masashige Hamano & Francesco Pappadà, 2023. "Exchange Rate Policy and Firm Heterogeneity," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 71(3), pages 759-790, September.
    3. Ghironi, Fabio & Ozhan, Galip Kemal, 2025. "Interest rate uncertainty as a policy tool?," Journal of International Economics, Elsevier, vol. 158(C).
    4. Norring, Anni, 2022. "Taming the tides of capital: Review of capital controls and macroprudential policy in emerging economies," BoF Economics Review 1/2022, Bank of Finland.
    5. Dupraz, Stéphane & Nakamura, Emi & Steinsson, Jón, 2025. "A plucking model of business cycles," Journal of Monetary Economics, Elsevier, vol. 152(C).
    6. Zaretski, Aliaksandr, 2021. "Financial constraints, risk sharing, and optimal monetary policy," MPRA Paper 110757, University Library of Munich, Germany.
    7. Javier Bianchi & César Sosa-Padilla, 2024. "Reserve Accumulation, Macroeconomic Stabilization, and Sovereign Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(4), pages 2053-2103.
    8. Sergio Urzua & Felipe Saffie & Felipe Benguria, 2017. "Demand Shocks and Labor Market Dynamics: Firm Level Responses to a Commodity Boom," 2017 Meeting Papers 1443, Society for Economic Dynamics.
    9. Kaz Miyagiwa & Yoshiyasu Ono, 2019. "Immigration and Secular Stagnation," ISER Discussion Paper 1054, Institute of Social and Economic Research, The University of Osaka.
    10. Lovchikova, Marina & Matschke, Johannes, 2024. "Capital controls and the global financial cycle," European Economic Review, Elsevier, vol. 163(C).
    11. Ronny Mazzocchi & Roberto Tamborini, 2019. "Current Account Imbalances and the Euro Area: Alternative Views," EconPol Working Paper 27, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    12. Luca Fornaro, 2022. "A Theory of Monetary Union and Financial Integration," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(4), pages 1911-1947.
    13. Tavares, Tiago, 2019. "Labor market distortions under sovereign debt default crises," Journal of Economic Dynamics and Control, Elsevier, vol. 108(C).
    14. Qun Harris & Misa Tanaka & Emma Soane, 2020. "Does bonus cap curb risk taking? An experimental study of relative performance pay and bonus regulation," Bank of England working papers 882, Bank of England.
    15. Yun Jung Kim & Jing Zhang, 2021. "The Relationship Between Debt and Output," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(1), pages 230-257, March.
    16. Guo, Hui & Jiang, Xiaowen, 2021. "Aggregate Distress Risk and Equity Returns," Journal of Banking & Finance, Elsevier, vol. 133(C).
    17. Ben Zeev, Nadav, 2017. "Capital controls as shock absorbers," Journal of International Economics, Elsevier, vol. 109(C), pages 43-67.
    18. Liou, Jennhae & Wang, Zijin & Jiau, Tzeryan & Zhao, Qiuyun, 2025. "Financial institution coverage and firm's cross-regional investment: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 106(C).
    19. Rong, Yuen & Tian, Cunzhi & Li, Lifang & Zheng, Xinwei, 2020. "Labor hiring and stock return: A model and new evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 59(C).
    20. Monica Amici & Emmanuele Bobbio & Roberto Torrini, 2018. "Patterns of Convergence (Divergence) in the Euro Area: Profitability Versus Cost and Price Indicators," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(3), pages 367-384, November.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:ijhr88:v:10:y:2020:i:2:p:252-279. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/ijhrs/index .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.