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Reward Management Archives - Ideas for Leaders

Setting High Performance Expectations Can Lead to Failure

Past research has demonstrated that high external performance expectations (e.g., from supervisors, co-workers, clients, family, friends, and the media) can motivate individuals to increase their efforts and be more persistent, leading to higher levels of performance. The source of this motivation is the desire to make a good impression on those who are watching. One […]

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Why Are Disagreeable Men Being Rewarded for Being Disagreeable?

While it is well documented that women earn less than men, a series of three studies examined whether agreeableness had an impact on this wage inequality — that is, whether men and women being agreeable or disagreeable changed the equation. Agreeableness incorporates attributes such as being trusting, altruistic, compliant, modest and tender-minded. Disagreeableness refers to […]

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Motivation Profiles: Pay and Reward Vs Fulfilling Work

Self-determination theory describes four types of motivation, moving on a spectrum from other-directed to self-directed. External motivation is at the other-directed end of the spectrum. Motivation is based on what others can give you (e.g. money, promotions, stock options and even praise) or what others can take away (e.g. demotion, termination). Introjected motivation is more […]

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Why Equity-Based Incentives Work Below the C-Suite

Equity-based incentives, such as restricted stock grants or options, are common for C-suite corporate executives. This is not surprising as they have corporate-level responsibilities. For business-unit managers in decentralized corporations, however, the practice has been less common. The preference in the past was for business unit-level incentives — that is, compensation tied to business unit-level […]

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Competition Among Peers Key to Managerial Promotions

To study the talent management processes of an organization, a team of researchers focused on the managerial skills required for management promotion. Identification of those skills is the key element in developing effective talent management programs. Managerial skills or attributes important for promotion can be broken down into human capital and social capital. Human capital […]

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Promotion Vs Compensation: Managing Employee Careers to Benefit the Organization

Personnel policies are often considered in the context of the individual — policies related to hiring, promoting, and firing individuals, for example. However, personnel policies must operate within the context of the organization as a whole. Thus, for example, the ideal career path within a company seems straightforward. The individual is hired, does continuously well, […]

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How CEOs Strong-Arm Their Compensation Consultants to Get What They Want

Does hiring compensation consultants result in higher pay for CEOs? Until recently, academic studies exploring this question have yielded no evidence that CEOs use compensation consultants to justify higher pay. A new disclosure requirement from the Securities Exchange Commission (SEC), however, allows researchers to better differentiate the potential motives behind the hiring of compensation consultants […]

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Why High-Status Companies that Attract the Best Fail to Keep Them

The best students from the best universities and graduate schools will be attracted to the most desirable companies to work for in their industries. At first glance, it would seem that these ‘high-status’ companies would be able to unequivocally benefit from the influx of only the best and the brightest into their workforce. A best-in-class […]

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