Abstract

AbstractWe explain the special features of the Finnish profit‐sharing system and explore what outcomes this deferred plan has for the company under longitudinal conditions. We measure changes in employee attitudes, effects of the system, and, in particular, the changes in the employee's pay knowledge before and after the combination of a deferred profit‐sharing system with a cash‐based one. Statistical analyses are preceded by qualitative analyses of interview data to provide the reader with an understanding of the context. Even though the employees' pay knowledge has increased and they perceive that they get more feedback on company key ratios, there still is a need for human resource management and managers to provide training and enhance discussions on the pay system for both supervisors and subordinates. © 2010 Wiley Periodicals, Inc.

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