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Are Workers Rewarded for Inconsistent Performance?

Author

Listed:
  • Anil Özdemir

    () (Department of Business Administration, University of Zurich)

  • Helmut Dietl

    () (Department of Business Administration, University of Zurich)

  • Giambattista Rossi

    () (Department of Management Birkbeck, University of London)

  • Robert Simmons

    () (Lancaster University, Management School, Department of Economics)

Abstract

This paper examines whether workers are rewarded for inconsistent performances by salary premia. Some earlier research suggests that performance inconsistency leads to salary premia while other research finds premia for consistent performances. Using detailed salary and performance data, we find that inconsistency is rewarded for some dimensions of performance, specifically those where creativity is important and outcomes have higher variance. We find salary penalties for inconsistent performances in those dimensions that are basic requirements of successful team production.

Suggested Citation

  • Anil Özdemir & Helmut Dietl & Giambattista Rossi & Robert Simmons, 2020. " Are Workers Rewarded for Inconsistent Performance?," Working Papers 386, University of Zurich, Department of Business Administration (IBW).
  • Handle: RePEc:zrh:wpaper:386
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    File URL: http://repec.business.uzh.ch/RePEc/zrh/wpaper/386_IBW_full.pdf
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    More about this item

    Keywords

    physical salaries; performance; consistency;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • Z20 - Other Special Topics - - Sports Economics - - - General

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