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The Relationship Between Work Experience and Employee Compensation: A Case Study of the Indian IT Industry

Author

Listed:
  • Mihir Dash

    (School of Business, Alliance University, India)

  • Suprabha Bakshi

    (School of Business, Alliance University, India)

  • Aarushi Chugh

    (Tata Consultancy Services, India)

Abstract

Work experience is one of the important factors affecting employee compensation. Employers regard experience as an indicator of performance in a similar role or industry. Thus, experience affects the ability of individuals to get a job, affects their starting salary, and plays a role in determining increments and promotions. However, there is mixed evidence in the literature, with some studies finding a significant positive impact, while others have found no significant relationship. The current study examines the relationship between work experience and salary for three groups of employees in the IT sector, representing low, medium, and high levels of experience.

Suggested Citation

  • Mihir Dash & Suprabha Bakshi & Aarushi Chugh, 2017. "The Relationship Between Work Experience and Employee Compensation: A Case Study of the Indian IT Industry," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(1), pages 5-10, February.
  • Handle: RePEc:ods:journl:v:6:y:2017:i:1:p:5-10
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    File URL: http://www.jami.org.ua/Papers/JAMI_6_1_5-10.pdf
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    References listed on IDEAS

    as
    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    2. Jana Cocuľová, 2016. "Analysis of Selected Factors of the Quality of Work Life as Determinants of Work Performance," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(3), pages 149-155, August.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    4. James L. Medoff & Katharine G. Abraham, 1980. "Experience, Performance, and Earnings," The Quarterly Journal of Economics, Oxford University Press, vol. 95(4), pages 703-736.
    5. Michaela Sirková & Viktória Ali Taha & Martina Ferencová, 2014. "An Impact of Continuing Education on Employees in Slovak Companies," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 3(3), pages 170-178.
    6. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281-281.
    7. Narzia Florin, 2014. "Employee and Customer Satisfaction through the Efficient Call Management Centre: An Overview," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 3(3), pages 133-145.
    8. Hafsa Maryam & Sania Aiman, 2013. "Attractiveness And Employability: A Qualitative Investigation Into Bangladeshi Perspective," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 2(1), pages 49-57.
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