Employee Contributions Research Articles

The Incidence of Social Security Contributions in the United Kingdom: Evidence from Discontinuities at Contribution Ceilings

This paper investigates the incidence of National Insurance contributions (NICs) in the UK, exploiting the ceiling that applied to employee and employer contributions between 1975 and 1985 and to employee contributions only between 1986 and 2007. Using data from the New Earnings Survey Panel Dataset, a mandatory survey of British employers’ payroll records, we show there was no dip in the earnings density at the ceiling in either period, suggesting that the earnings of those near the ceiling were unresponsive to the change in tax rates. The absence of such a dip allows us to test which of labour cost, gross earnings or net earnings are smooth around the threshold. As shown by Alvaredo et al. (De Econ, 2017. doi:10.1007/s10645-017-9294-7), this is informative about the incidence of the change in tax rates at the threshold on those located nearby. We cannot reject the hypothesis that it is gross earnings that are smooth around the threshold, which may reflect a substantive role for statutory incidence in determining economic incidence. However, a lack of statistical power means that, while in some cases we can reject the hypotheses that the full economic incidence of NICs are borne by one side of the market, our results taken alone are also consistent with a wide range of less extreme incidence shares.

System kwotowy jako źródło problemów finansowych Państwowego Funduszu Rehabilitacji Osób Niepełnosprawnych

People with disabilities without adequate support from the state are unable to compete effectively with non-disabled people in the labor market. Therefore, there is commonly used legal compulsion to employ a specific quota of such people called quota system. This system is also used in Poland, and also in order to increase its effectiveness it applies subsidies for salaries of employees with disabilities. In case of not reaching the required employment rate for disabled workers, employers are required to deposit financial penalties on account of the State Fund for Rehabilitation of Disabled Persons, which finances subsidies for wages of workers with disabilities and other activities in the field of social and vocational rehabilitation of people with disabilities. Dependence of the Fund's expenditure for these tasks from the received contributions of employers is a threat to the financial situation of the Fund.

The Importance of Manufacturing in Economic Development: Has This Changed?

Summary Manufacturing has traditionally played a key role in the economic development of developing countries. In recent years, it has been argued that the importance of manufacturing has diminished over the last 20–25 years, resulting in premature deindustrialization or non-industrialization in developing countries. This study explores whether the low levels of industrialization in developing countries are attributable to long-term changes in opportunities available to the sector around the globe. The study’s findings show that the manufacturing sector’s value added and employment contribution to world GDP and employment, respectively, have not changed significantly since 1970. The declining manufacturing value added and manufacturing employment share in many developing countries has not been caused by changes in the sector’s development potential but has instead resulted from a shift of manufacturing activities to a relatively small number of populous countries, thus resulting in a concentration of manufacturing activities in specific developing countries. As was the case in the last millennium, industrialization has continued to play a key role in the growth of developing countries, which have sustained rapid and long-term growth for the last 25 years. Achieving economic development by following the path of industrialization will likely remain important for low-income countries because they are able to take advantage of their backwardness relative to those countries which have already experienced rapid industrialization with a disproportionately large share of manufacturing activities, and could soon enter a mature stage of industrialization.

Opting out of Retirement Plan Default Settings

The introduction of automatic enrollment (AE) features into employer sponsored defined contribution plans has greatly increased retirement plan participation by automatically enrolling employees into their employers' plans. We analyze administrative data provided by Vanguard on approximately 100,000 newly hired employees who are eligible for 206 unique plans featuring automatic enrollment. We find that most participants will at some point take an stance towards their retirement savings by choosing either a different contribution rate or investment portfolio than that specified by their plan's default settings. Among our sample of over 95,000 newly hired employees participating in their employer's AE plan, we find that 59 percent elect a different contribution rate, investment portfolio, or both within the first few years of participation. Selecting a different contribution rate is considerably more common than selecting different investments: 57 percent of participants choose a contribution rate different than the default, while only 17 percent elect a different investment portfolio. Moreover, among those that select a different contribution rate, roughly two thirds increase their contribution rate above that specified by their plan while another third decreases their contribution rate below the plan default. When examining what characteristics are predictive of becoming an active participant, we find that women are slightly more likely than men to choose a contribution rate different than the default, and do so by reducing their contribution levels on average. Conversely, participants with higher incomes are more likely to select contribution rates above the default than their lower- income peers. Plan-level characteristics are also important predictors of choosing a contribution rate different than the default. In particular, participants are more likely to actively increase their contribution rates if they are in plans that offer immediate vesting of employer contributions, or if they face a default contribution rate this is too low to receive the maximum possible employer match. Conversely, participants are more likely to reduce their contributions below the default rate if they participate in plans that feature default enrollment in automatic escalation (a plan feature under which a participant's contribution rate automatically increases over time), or plans that initially have a default deferral percentage above 3 percent (the median default contribution rate in our data). When it comes to choosing a different investment portfolio than the default, we find that men, those with higher incomes, and participants in plans that feature immediate vesting of employer contributions are more likely to choose their own investment portfolio.

Do staged maturity models result in organization-wide continuous process improvement? Insight from employees

During the last two decades, staged models have been successfully used by software organizations for process improvement. However, the relationship between these models and organization-wide continuous process improvement has not been studied extensively. This study questions the continuity, extent and participation characteristics of software process improvement by analyzing the software process improvement activities and employee perceptions within two different software companies that has CMMI level-3 certification. In order to perform this analysis a multiple case study in two phases were performed. In the first phase the process improvement suggestions submitted by the employees are analyzed from three aspects, namely the submitter, timing, and content characteristics. In the second phase, the employees’ perception regarding the organization-wide continuous process improvement activities are analyzed by performing a factor analysis on questionnaire results obtained from the employees. The results of the multiple-case study show that there are shortcomings with respect to organization-wide continuous process improvement. It is seen that the software process improvement activities are not performed in a continuous manner. In addition, the contribution of employees to these activities and their perspectives of process improvement are highly dependent on their role within the organization. Based on these findings, it is concluded that staged maturity models fail to enable organization-wide continuous process improvement. Organizations employing these models display a case of process-wise oligarchy where a minority manages the processes for a majority who use them. We believe that these findings should generate the incentive to more deeply analyze these shortcomings and determine improvement opportunities for staged models.

PENGARUH BUDAYA ORGANISASI DAN GAYA KEPEMIMPINAN TERHADAP KEPUASAN KERJA DAN KINERJA KARYAWAN DI LINGKUNGAN KANTOR PUSAT UNIVERSITAS JEMBER

Abstract: Employee contribution becomes important when it is done with effective action and right behavior. Not only the amount of effort but also the direction of the business. The nature, effort or willingness to work as well as the various things that constitute organizational support is very important for the success of employee performance. In this study, the author tries to analyze the problems faced by the administrative staff of Jember University (UNEJ). Empirical tests were conducted on 115 administrative employees to obtain data on organizational culture and leadership style that has been enough to give hope to the administrative staff. Analyzer used in this research is Structural Equation Model (SEM). From the results of model testing, it can be concluded that organizational culture and leadership style have a positive effect on job satisfaction, leadership style positively affect the organizational culture. Organizational culture, leadership style, and job satisfaction have a positive effect on employee performance. To improve the performance of administrative employees, especially the dimensions of cost control and self-reliance initiatives, it requires a bureaucratic leadership style and autocratic leadership style in an open and process-oriented organizational culture system as an effort to improve employee job satisfaction.Keywords: Organizational Culture, Leadership Style, Job Satisfaction, and Employee Performance

Integral indicator for evaluating system of material motivation employees of state and private enterprises in the construction sector

The article is devoted to modeling mechanism for evaluation the labor contribution of Russian employees of public and private enterprises in the construction sector based on an analysis of current problems in the remuneration of the government. There was also taken into account the state of motivation system and job satisfaction of human resources in the executive authorities in the subject of Russian Federation (on an example of the Yamalo-Nenets Autonomous Okrug - YaNAO). The survey was dedicated to revealing preferences of civil servants in matters of career growth, professional development. On the basis of the quota survey of civil servants using absentee (dispenser) survey, conducted in July-September 2015 in Yamalo-Nenets, the following conclusions were formulated. The study has found that enrollment in the personnel reserve is not an effective measure to motivate public servants since it functions mostly just formally. Of particular importance are such working conditions as “remuneration dependence on the actual results” and “Personal responsibility for specific areas of activity”, which is directly linked with the possibility to receive appropriate remuneration. Authors propose an integral indicator for assessing labor contribution of an employee of public and private enterprises of the construction sector in order to improve financial motivation and increase the level of interest, which is based on the principles of economic and mathematical modeling.

Work life balance among executives in manufacturing sector in Ludhiana

Determining the Work life balance (WLB) of employees is an important consideration for employers interested in improving employee's contribution towards work. The purpose of this research was to investigate the work life balance among executives in manufacturing sector in Ludhiana. Seven WLB variables were namely self, family, technology, leisure, money, change and time management were examined. The results showed the level of work life balance and the practices followed by employees and management to improve work life balance among executives. According to the findings of the research, the achievement of better work-life balance can yield dividends for employers in terms of: having a more motivated, productive and less stressed workforce that feels valued; attracting a wider range of candidates, such as older part-time workers; increased productivity and reduced absenteeism; gaining the reputation of being an employer of choice; retaining valued employees; achieving reduced costs; and maximizing available labour.

An analysis of the determinants of providing business services in Mainland China

This paper analyzes the factors affecting decision-making on the provision of business services by Taiwanese accounting firms in Mainland China, in order to provide suggestions and managerial implications to accounting firms on decision-making concerning business operations. Logistic regression analysis is conducted, and the empirical model of decision-making on the provision of business services in Mainland China is developed. The dependent variable is whether or not to provide business services in Mainland China; the independent variables are divided into five dimensions: firm attributes, labor structure and allocation, type of professional service, employee contribution, and client diversification. According to the results, when an accounting firm establishes a management consulting firm, has a higher percentage of employees with high educational levels, has a higher percentage of young employees, has a higher percentage of management consulting personnel, and has a higher percentage of financial auditing business revenue, the probability of providing business services in Mainland China will be higher. However, when the percentage of tax service personnel is high and the clients are highly diversified, the probability of providing business services in Mainland China will be lower. Therefore, it is suggested that accounting firms should set up management consulting firms, managers should hire more employees with a master's degree, young employees, and management consulting experience; in addition, the firms should actively expand their services in financial auditing and focus on specialized client groups, which will be more helpful to the accounting firms providing related business services and operational development in Mainland China. The findings can provide references to managers of accounting firms for the evaluation of expanding their business to Mainland China, as well as related decision-making.

Export and gender difference in production contribution: A joint and non-linear analysis using panel and firm-level data

Trade liberalization has been widely recognized to have a profound influence on the labor market, especially in developing countries. Amid the transformation of gender roles, the improvement of female workers’ welfare has received increasing attention. In such studies, the gender wage gap generally is the focus, and the residual wage gap is commonly used to measure discrimination. However, this paper empirically examines gender differences in workers’ contributions to production through labor efficiency and productivity, which are defined separately. We use panel data on Chilean manufacturing firms from 2001 to 2007. Non-linear estimations are conducted to determine the gender differences in these firms. We first decompose male and female labor efficiency based on a traditional Cobb-Douglas production function. Next, we extend the Cobb-Douglas function and use a semi-parametric method to remove endogeneity and reduce bias estimation. We then also decompose female and male workers’ contributions to productivity. The results show that, among domestic firms which do not export, female workers contribute significantly lower efficiency and productivity than male workers. Among firms which participate in the exporting market, the differences in the efficiency and productivity of female and male workers are insignificant. Therefore, gender production differences are found to be significant in domestic but not exporting firms. Besides the firms’ exporting status, we also estimate the impact of capital ownership and exporting revenue on gender as alternative robustness tests. The findings remain consistent. Firms which do not adopt foreign capital, or operating exclusively in the domestic market, have significant, unequal distributions of labor efficiency and productivity between female and male workers. Firms which are actively involved in foreign markets have insignificantly gender differences. Therefore, export-market participation indeed reduces gender differences and guarantees similar contributions by female and male employees. High productivity, advanced managerial philosophy, and capability to compete globally all encourage a firm to export, and to equalize the treatment and contribution of male and female employees as well.

The Development and Psychometric Validation of an Arabic-Language Version of the Pain Catastrophizing Scale.

Context. The Pain Catastrophizing Scale (PCS) is the most widely used measure of pain-specific catastrophizing. Objectives. The purpose of the present study was to develop and psychometrically evaluate an Arabic-language version of the PCS. Methods. In Study 1, 150 adult chronic nonmalignant pain patients seeking treatment at a hospital setting completed the PCS-A and a number of self-report measures assessing clinical parameters of pain, symptoms of depression, and quality of life. Study 2 employed a cold pressor pain task to examine the PCS-A in a sample of 44 healthy university students. Results. Exploratory factor analyses suggested a two-factor structure. Confirmatory factor analysis comparing the 2-factor model, Sullivan's original 3-factor model, and a 1-factor model based on the total score all provided adequate fit to the data. Cronbach's alpha coefficients across all models met or exceeded accepted standards of reliability. Catastrophizing was associated with higher levels of depression and increased pain intensity and interference. Catastrophizing predicted decreased quality of life, even after controlling for the contribution of gender, employment, depression, and pain interference. PCS-A scores were positively correlated with heightened experimental pain severity and decreased pain tolerance. Conclusion. The present results provide strong support for the psychometric properties of the PCS-A.

The role of commercial motorcycles in alleviating poverty in rural areas: a case study of Laikipia East Sub-County, Kenya

The study examined the contribution of commercial motorcycles in alleviating poverty in rural areas with specific reference to Laikipia East Sub-County, Kenya. The specific objective of the study was: to examine the contribution of commercial motorcycles in poverty alleviation in Laikipia East The hypothesis tested was there is no significant difference between previous employment and commercial motorcycles contribution to poverty alleviation in Laikipia East Sub-County. Questionnaire survey was administered to 66 respondents. Thorough literature search and review as well as field observations were used. Data was analysed using both descriptive and inferential statistics. Descriptive analysis included frequency counts, tables, bar graphs, pie-charts and percentages. The Spearman's rank correlation coefficient was used to test the hypothesis. The study found out that commercial motorcycle contributes 10% towards poverty alleviation in Laikipia East Sub-County, and that key activities which had come up as result of commercial motorcycle ridership generated gainful employment. The study recommended that the county government should: rehabilitate the roads and construct motorcycle lanes; train and emphasise on best practices on motorcycle operations; and, establish well updated and accurate data base on commercial motorcycle activities to enhance their contribution to poverty alleviation and sustainability.

Experience of European pension systems reforming and the possibility of its use in the Russian Federation

In recent years, after the World Bank publication in 1994, there has been much discussion about pension systems reforming. A key issue considered by World Bank was increasing life expectancy and projected pension resources shortfall. Since 2000 the European Commission actively participates in the process of reforming pension systems in European Union (EU) member States. The aim of the study was to develop concept for further reforms of the Russian pension system based on the experience of EU. The need for Russian pension system change is due to increasing maintenance costs, dependence on budget revenue and participant contributions, low level of total pension system assets and anticipated growth deficit of the Pension Fund of the Russian Federation. Increasing and equalization of the retirement age between men and women, increasing contributions of employees for funded pension, lifting of the moratorium on the transfers to non-state pension funds and further development of individual supplemental pension (non-governmental) were identified as major proposals for priority directions in improving Russian pension system, based on EU experience. Refs 26. Figs 4. Tables 7.

УПРАВЛЕНИЕ ФОРМИРОВАНИЕМ И РАЗВИТИЕМ ИНТЕЛЛЕКТУАЛЬНОГО КАПИТАЛА ПРЕДПРИЯТИЯ

The subject of this research is the external and internal relations of the enterprise regarding the formation of its own intellectual capital. Methodological approaches to capital formation are revealed: principles of accounting for development trends of the modern world and national economies, macro and microeconomic conditions for the formation and use, methods of operational and strategic management of capital, economic and social instruments for accounting, regulation, and stimulation of its development. Some ways of formation and use of an intellectual capital of the enterprise in the modern business environment are proposed. The article reveals the essence and formulates the concept of the enterprise’s intellectual capital, its structure. The main approaches to the formation of a corporate organizational and economic mechanism for managing intellectual capital are proposed. The results of research on the conditions for the formation and use of intellectual capital at a number of enterprises in the Kherson region of Ukraine are presented. Based on the results of the study of issues of formation and development of the intellectual capital of enterprises, the following conclusions are made: intellectual capital of the enterprise is considered by the authors as a system of relations between different economic entities regarding rational sustainable reproduction, output of products, goods, services on the basis of progressive development of engineering, technology, production organization, increase in corporate incomes and living standards of employees on the basis of personified economic interests of participants in production. These are the materialized and non-materialized resources of the enterprise, formed on the realized knowledge, experience, skills, abilities of employees, relations with consumers, suppliers and other market partners, on the relations between employees and departments of the enterprise, which together determine its possibilities for obtaining value added and rising income. In the structure of the enterprise intellectual capital, human, social, structural, and market capital are distinguished. On the understanding of the essence of these groups of capital – productive, generating human, uniting, mobilizing social, providing with information structural and linking, stimulating market capital, it is proposed to form a corporate system for managing the intellectual capital of an enterprise. To achieve the tasks of managing intellectual capital, it is suggested to adhere to the principles of strategic partnership of enterprise owners, management, and hired professionals, workers; partnership relations between all participants in the production process; formation and application of criteria for assessing the individual contribution of employees, formal and informal groups in the final results of the enterprise; organization of an all-encompassing network of forms of mass participation of workers in the identification and implementation of reserves to improve the efficiency of production and the quality of products, goods, and services.

Pensions and Financial Reporting

This note serves a wide audience. At Darden, it is used in two elective courses: Financial Reporting and Analysis and Financial Statement Analysis and Corporate Valuation, as well as in the open executive education program, Financial Management for Non-Financial Managers. It will also be used in the EMBA and Global EMBA programs. Depending on the type of pension plan offered, accounting for pensions can present one of the more difficult and challenging financial reporting issues that companies encounter. This note outlines the differences between defined benefit and defined contribution pension plans. It is written for students, managers and executives who have an interest in the topic but have limited accounting and financial reporting backgrounds. It covers the two major types of pension plans and the accounting and financial reporting challenges they present. It also includes an explanation of how corporate pension plans affect financial statements and the footnotes. It also mentions public pension plans. It includes an example from an actual corporate annual report. Pensions are a major global issue for corporations, countries, states and cities. Excerpt UVA-C-2340 Feb. 7, 2013 PENSIONS AND FINANCIAL REPORTING Since the 1940s, U.S. corporations have been providing some type of pension benefits for their employees, primarily as a means of attracting and retaining desired personnel. Depending on the type of pension plan offered, accounting for pensions can present one of the more difficult and challenging financial reporting issues that companies encounter. The reason for this is that the traditional type of pension plan offered to employees can result in benefits that are earned over a 40- to 50-year period, which creates a promised payout period of 20 years or more. As a consequence, pension accounting can be heavily dependent on estimates, judgments, and discounting assumptions. This traditional type of plan is known as a defined benefit pension plan. Before describing this pension plan, however, we will first describe a much simpler type of plan known as a defined contribution (DC) pension plan. Defined Contribution Plans DCs are the simplest and most straightforward corporate pension plans. These plans promise a specific monetary contribution to an employee's pension account. The employee usually has an opportunity to influence where the contributed funds are invested and, in return, bears the responsibility for the investment risk. For example, a plan might promise to contribute 8% of an employee's salary to an investment account for the employee's benefit. Typically, these plans (e.g., 401(k) plans) have the employer matching employee contributions to approved investments. Upon retirement, there is often an opportunity to cash out with a lump-sum payment or to select an annuity where a payment is made to the retiree over some specified period of time. The accounting for (DC) plans is also simple and straightforward. In each accounting period, the promised contributions are reported as an expense, and a payment is made to the employee's account or trust. After that, the employer has no further responsibility or obligation. . . .

The impact of China's housing provident fund on homeownership, housing consumption and housing investment

In the absence of well-functioning credit and mortgage markets, the Chinese government has implemented several reforms to encourage home purchases. Among the most prominent of these is the Housing Provident Fund, which requires employers and employee contributions to a pool which is later used to make mortgage loans to participants. We use the 2011 Chinese Household Finance Survey and a smaller survey from Jinan, Shandong province to examine the extent to which the Fund encourages the acquisition of owner-occupied housing. We find that fund participants are more likely to be owner-occupiers, although they also purchase smaller properties than they otherwise might have, due to the down payment restrictions on mortgage loans. The HPF also encourages housing investment, but to a lesser extent.

Human resources perceptions of corporate chaplains: enhancing positive organizational culture

Workplace chaplaincy represents one way that workplace spirituality manifests itself today in corporate America. Rigorous scholarly research into workplace (or corporate) chaplaincy remains scant. This article seeks to remedy that by focusing on human resource professionals’ perceptions and experiences with workplace chaplaincy in five organizations in the United States. Using data gathered from qualitative interviews with HR executives and staff, five themes emerged regarding their views of chaplaincy in their organizations: chaplains support and enhance a positive organizational culture; they complement or serve as an alternative to employee assistance programs; they provide psychosocial and pastoral care support to employees; they help to bridge cultural divides; and they enhance HR’s efforts in religious diversity and accommodation. Overall, HR felt that chaplains contribute to a positive organizational culture through employee care and contributions to diversity and inclusion. Article ends with implications for theory and practice.

Health Insurance Costs and Employee Compensation: Evidence from the National Compensation Survey.

This paper examines the relationship between rising health insurance costs and employee compensation. I estimate the extent to which total compensation decreases with a rise in health insurance costs and decompose these changes in compensation into adjustments in wages, non-health fringe benefits, and employee contributions to health insurance premiums. I examine this relationship using the National Compensation Survey, a panel dataset on compensation and health insurance for a sample of establishments across the USA. I find that total hourly compensation reduces by $0.52 for each dollar increase in health insurance costs. This reduction in total compensation is primarily in the form of higher employee premium contributions, and there is no evidence of a change in wages and non-health fringe benefits. These findings show that workers are absorbing at least part of the increase in health insurance costs through lower compensation and highlight the importance of examining total compensation, and not just wages, when examining the relationship between health insurance costs and employee compensation. Copyright © 2016 John Wiley & Sons, Ltd.

Managing Talents in Higher Education Institutions: How Effective the Implementation of Succession Planning?

The organisations that are aware that human capital is one of their greatest treasured resources would have an impressive competitive mechanism. “Great vision without great people is irrelevant”. Organisations may choose to focus on financial capital, information technology, equipment, and excellent processes; but in the end, their personnel and individual employees are the most important. The contributions of employees are undeniable. To accomplish the objectives of the National Higher Education Strategic Plan, the government is trying hard to transform Malaysian Higher Education Institutions (HEIs) with the leadership development for top and middle-level management. This study investigated the effectiveness of sucession planning in HEIs. This study employed the stratified random sampling technique from the population of academics from public universities in Malaysia. The results determine that the sample mean of succession planning at α = 0.05 level of significance concludes that succession planning at Malaysian HEIs is effective. This result might answer the capability of HEIs in practising effective succession planning. The succession process should include the identification of a successor, the designation of a successor, the selection and training of the successor, the development of a vision or strategic plan for the firm following the succession, the definition of the role of the incumbent and the communication of the decision to key stakeholders.

An algorithm for building a project team considering interpersonal relations of employees

The setting of the problem of building a project team considering interpersonal relations between the employees was formulated. While selecting an employee to a project team, it is proposed to consider his contribution to inter-group interaction, which is determined on the basis of the number of choices and rejections, given and obtained by each candidate in the process of sociometric survey. We proposed improvement of the procedure of sociometric survey, which allows taking into consideration the degree of preference (rejection) of each other by the individuals while filling in sociometric cards and when calculating individual sociometric indices, which makes it possible to decrease the uncertainty during selection of candidates to a project team. The algorithm of solution of the problem of building a project team by the criterion of the maximum total contribution of employees to group interaction was developed, in which ranking procedure of sociometric survey was used. It is expedient to build a project team by the criterion of maximum total contribution of employees to group interaction in the case, when each candidate can perform only one role in the project. If employees of a company can perform different roles in the project, the proposed criterion of individual contribution of employees to group interaction can be used as a particular criterion in the overall model of multifactor evaluation of candidates to a project team.