Employee Capital Research Articles

LINKING HUMAN CAPITAL TO INNOVATION CAPABILITY: A DYNAMIC CAPABILITIES PERSPECTIVE

The research examines the mediating role of dynamic capabilities in the effect of human capital on innovation capability. The research was conducted with white-collar employees in a logistics company based in Istanbul. A simple random sampling technique was used to determine the sample. The research sample is 238 employees working in the same company for at least three years. Mediation models were used to analyse the data. The data analysis determined that employee capital significantly increases the company's dynamic and innovation capabilities. In addition, the company's dynamic capabilities mediate in forming the innovation capability of employee capital. The hypotheses created within the scope of the research were supported. Human capital companies' dynamic capabilities effectively form the company's dynamic capabilities and subsequently obtain innovation capabilities. The research contributes to the literature by associating employee capital, innovation capability, and dynamic capabilities in the logistics sector.

MANAGEMENT ASPECTS IN THE FUNCTIONING OF EMPLOYEE CAPITAL PLANS

The knowledge of Poles about the new pension system is negligible. Few people realize that public pensions will be at a level that will not ensure survival for the elderly. The modernization activities done since 2004 in this system also do not significantly change the state of knowledge on this subject. Another decision to introduce Employee Capital Plans (PPK) in Poland, which is an element of the third pension pillar, did not improve the public’s knowledge in this regard. According to the literature on the subject, the Employee Capital Plans introduced in 2019 contain certain types of management, namely knowledge management, human resources management and financial management. This article presents the aspects of management in the functioning of PPK, where the basis for their clarification was a survey conducted among entities participating in the plan, i.e. 134 employers (PPK creators defining the rules for managing contributions) and 821 employees (participants making decisions about participation in the plan). The aim of this article is to present the opinions of PPK participants on the identified management aspects functioning in this element of the third pension pillar in Poland.

The losing streak of Employee Capital Plans in the pension fund market

The losing streak of Employee Capital Plans in the pension fund market

Employee Capital Plans performance through the lens of the participant — how to (better) measure and inform about the returns

Employee Capital Plans performance through the lens of the participant — how to (better) measure and inform about the returns

Perception of old age versus saving in Employee Capital Plans

Perception of old age versus saving in Employee Capital Plans

Assessment of the performance persistence of Employee Capital Plans

Assessment of the performance persistence of Employee Capital Plans

Open Pension Funds vs Employee Capital Plans, which solution is more effective?

Introduction: Poles do not save long-term in the context of future retirement. Higher benefits were to be provided by Open Pension Funds (OPF, Pol. otwarte fundusze emerytalne), thanks to investing in capital markets. However, the implemented reforms reduced the amount of funds transferred to them, and also made it possible to resign from saving them. In order to encourage Poles to save long-term, Employee Capital Plans (ECP, Pol. pracownicze plany kapitaowe) were introduced, to which auto-subscription will function for the first time in 2023.Objective: The main objective is to compare the investment effectiveness of OPF and ECP. The author also adopted an auxiliary objective i.e. recommendations for people considering joining the ECP.Materials and methods: The author used a critical analysis of the literature on the subject, quarterly continuous, compound rates of return, and the Sharpe ratio from 1 July 2020 to 31 December 2022, which were calculated for 10 OPF and 19 ECP, which allowed to avoid the survivorship bias in the analysis.Results: The effectiveness measures used do not allow for an unequivocal statement about which form of long-term saving gives higher results. The different structure of the portfolio in ECP than in OPF allows for greater risk diversification. This can be seen, for example, after the start of the war in Ukraine, when the results of OPF were worse than those generated by ECP, which is obliged to invest part of its funds in debt securities.

LEGAL NATURE OF CONTRIBUTIONS OF THE EMPLOYEE ENTITY TO ECP

In the article, the Author discusses the subject of the legal nature of contributions which are financed by the employing entities for participants to the Employee Capital Plans (ECP). The Author points out that despite the private nature of the ECP (which is declared by the legislator), this institution contains many elements of a public law nature. She particularly notices the public perspective at the obligations of employing entities which are related to ECP, especially in the field of their financing of basic contributions. In her opinion the nature of additional contributions financed by employing entities is more heterogeneous

How Employee Capital Plans qualify under the IORP II Directive

Motivation: The pension system in Poland is undergoing another major reform. Between 2019 and 2021 Employee Capital Plans (ECP) are being implemented. This common system of voluntary pension savings schemes is a new element of the third pillar. The purpose of the ECP is to cover the majority of employees and to provide additional pension security for the large part of the labour force in Poland. Since Poland is still implementing the reform, and the system is still quite young, the research background is limited.
 Aim: This article tries to provide deeper, both legal and economic, analysis of the ECP. On the legal ground, it considers whether ECP provide “cover against biometric risk” or “guarantees a given level of benefits” for the purposes of Article 13(2) of EU Directive 2016/2341 (the “IORP II Directive”). If no such cover and no such guarantee are provided, then an ECP scheme is not required to comply with the technical provisions, buffer, and other funding requirements applicable to an IORP which is classified as a “regulatory own fund” in Article 15 of the IORP II Directive. From the economic perspective, the purpose of the article is to answer the question of how much the ECP members are covered against the risk of longevity. To achieve the research objective the method of critical legal dogmatics and the economic analysis of law method are employed.
 Results: The article explores how the ECP schemes are classified under the IORP II Directive. It also answers the question of how much the ECP members are covered against the risk of longevity. The main finding of this analysis is that the ECP, as a defined contribution plan, does not protect participants from either biometric risk or asset value declines.

Business Intelligence a potrzeby Just Culture. Analiza możliwości współdziałania wysoko zaawansowanych technologii i potrzeb organizacji gospodarczych

Purpose – The aim of the publication is to present the principles of security of business processes at airports – Just Culture and the transplantation of these principles into process -oriented business environments of enterprises with the use of Business Intelligence. Research method – By the method of comparisons and references of the priority importance of the security of airport business processes for the ability of these entities to function in relation to the essence of the security of business processes of enterprises in their industries, the authors showed areas for new qualitative applications of Just Culture in non -airport organizations conditioned by Business Intelligence applications.Results – According to the authors, the priority of the safety of airport operations, which subordinates all processes of these commercial organizations and international ci vil aviation, may be in the conditions of dynamically growing uncertainty in the functioning of enterprises, a breakthrough inspiration for commercial entities from other industries in the field of security protection implemented through economic processes. The essence of the issue is important for management practitioners. The perspective of Just Culture’s attitude to the economic use of employees’ knowledge resources, innovative for this environment, extends this spectrum with the ability to use them to strengthen and increase the implementation of security and reliability of the company’s business processes under the condition of unconventional use of the knowledge resources of the employee capital. Originality / value / implications / recommendations – The analogy method of examining the breakthrough impact of the Internet on the dynamics of the development of entre-preneurship and world economies, made available to business by the military, initially the sole user of this information technology, the authors see the possibilities of strengthening the security of business processes of economic organizations by adapting rules that Just Culture used exclusively in the aviation industry to their process structure.

Auto-Enrollment Pension in Poland: Impact on HRM Strategies and Pension Participation Rates

The study aims a critical analysis and preliminary assessment of chosen effects of the implementation of a new type of occupational pension schemes with automatic enrollment: the Employee Capital Plans (PPKs), successively has introduced in Poland since 2019.

The Optimization Of Employee Stock Option Plan In Achieving Financial Performance

This study aimed to examine the effects of Intellectual Capital proxied by Human Capital (HC), Structural Capital (SC), and Customer Capital (CC) on the company's financial performance. It also investigated stock-based compensation's impact through employees' stock options programs and Intellectual Capital on the company's economic performance. The research samples were 36 companies that implemented the Employee Stock Option Plans as a compensation scheme during the 2016-2019 period. There were 144 observations. The partial test used multiple regression, while the moderating variable test applied residual analysis by examining the effect of deviation from a model. As a result, this study indicated that Human Capital partially influenced its financial performance. Stock-based compensation impacts the effect of Human Capital on financial performance. The shares ownership of employees with competencies, knowledge, skills, and behavior will support organizational structures' optimization in achieving work performance. Human capital is the source of innovation and knowledge that can solve a company’s problems. The implication of this research is that information about intellectual capital (Human Capital, Structural Capital, and Employee Capital) is needed by the company to determine the effectiveness of implementing the employee stock option plan in achieving better wealth in the future.

Staff Representation Rights Related to The Creation Of Employee Capital Plans (PPK)

The article presents the role of the staff representation under the Act of 4 October 2018 on Employee Capital Plans. Employee Capital Plans (PPK) are the part of third pillar of polish pension system. By creating the PPK, the legislature placed the staff representation and the employer under an obligation to co-decide on the form of the created capital plan. The method of identifying the staff representation, as defined in the Act on Employee Capital Plans, is modelled on the regulation contained in the Act on Occupational Pension Schemes. The Act on Employee Capital Plans states, that an occupational trade union organisation operating within the premises of the company excludes the competence of representation of employees. The legitimacy of the primacy of the trade union over the non-union representation of the staff stems, first of all, from the possibility of guaranteeing the employees’ effective participation in the selection of the financial institution.

Determinants of pension capital management in Poland

The pension system’s construction is an important element of the public finance system and the state budget policy. It is a relevant and important topic from the perspective of the level of cash benefits for future retirees after they finish their professional careers.The aim of the paper is to present and analyze the evolution of solutions in the construction of the pension system in Poland since its first reform in 1999. The paper analyzes various options of investing for future pensions allowed by law in Poland. Simulations of the levels of future pension benefits are based on different variations, including membership or non-membership in an Employee Capital Plan and membership or non-membership in an Individual Retirement Account after the liquidation of Open Pension Funds.According to the calculations, the future pensioner can count on the total payment from the commercial pillars, assuming the average life expectancy in Poland is reached: PLN 230,100 (Option I), PLN 346,698 (Option II), PLN 187,643 (Option III), and PLN 304,240 (Option IV), respectively.It is an emphasized fact that ensuring the living standard’s expected level after reaching retirement age is strictly dependent on voluntary investments for future benefits during professional activity.

The Initial Stage of the Implementation of Employee Capital Plans in Greater Poland from the Perspective of Human Resource Management: A Research Report

The introduction of an employee capital plan (PPK) constitutes a new challenge for various groups of stakeholders involve in the process—employers, employees and their representatives, state institutions acting as co–organizers, regulators and supervisors of the process, and financial institutions offering employee capital plan financial products. On behalf of employers, it is the HR management, accounting, and finance departments that are primarily responsible for implementing this complex management process. The purpose behind the research,* the initial and partial results of which are presented in the article, was to identify the main management problems occurring in the first phase of employee capital plan implementation in large enterprises in Greater Poland as well as to seek answers to the question of whether the surveyed entrepreneurs fully utilize the possibilities of the new retirement pension scheme in their human resource management strategy and in their motivational system.

The Story of the Open Pension Funds and the Employee Capital Plans in Poland. Will It Succeed This Time?

Poland’s new Employee Capital Plans (PPK) scheme, which is mandatory for employers, started to be implemented in July 2019. The article looks at the systemic solutions applied in the programme from the perspective of the concept of the simultaneous reconstruction of the retirement pension system. The aim is to present arguments for and against the project from the point of view of various actors, and to assess the chances of success for the new system. The article offers a detailed study of legal solutions, an analysis of the literature on the subject, and reports of institutions that supervise pension funds. The results of this analysis point to the lack of cohesion between certain solutions of the 1999 pension reform and expose a lack of consistency in how the reform was carried out, which led to the eventual removal of the capital part of the pension system. The study shows that additional saving for old age is advisable in the country’s current demographic situation and necessary for both economic and social reasons. However, the systemic solutions offered by the government appear to be chiefly designated to serve short-term state interests and do not create sufficient incentives for pension plan participants to join the programme.

Wygaszanie ubezpieczeń społecznych a kumulacyjna metoda realizacji prawa do zabezpieczenia społecznego

Wprowadzenie Pracowniczych Planów Kapitałowych, ustanowienie tak zwanej trzynastej emerytury jako świadczenia cyklicznego, a także odejście od procentowej waloryzacji świadczeń emerytalnych i rentowych to przykłady zmiany percepcji zabezpieczenia społecznego. Wdrażane przez władze publiczne rozwiązania mają coraz mniej wspólnego z metodą ubezpieczeniową i wprowadzają nowe mechanizmy obce dotychczas funkcjonującym ubezpieczeniom społecznym. Celem niniejszego artykułu jest przedstawienie poglądu wskazującego na wygaszanie ubezpieczeń społecznych w Polsce oraz próba eksplanacji nowej metody realizacji prawa do zabezpieczenia społecznego.
 W pierwszej części niniejszego opracowania przedstawiono dotychczas znane metody zabezpieczenia społecznego. W drugiej części artykułu autor podejmuje próbę przedstawienia kształtującej się obecnie nowej metody realizacji prawa do zabezpieczenia społecznego. Trzecią część tekstu stanowi przedstawienie zmian w systemie zabezpieczenia społecznego wprowadzanych w latach 2016–2019. Całość wieńczy podsumowanie zawierające argumenty przemawiające za umacnianiem się nowej metody w polskim systemie emerytalnym.

Pracownicze plany kapitałowe (PPK) – ratunek dla polskiego systemu emerytalnego?

Pracownicze plany kapitałowe (PPK) – ratunek dla polskiego systemu emerytalnego?

Employee Capital Plans — a new mechanism for collecting savings

Employee Capital Plans — a new mechanism for collecting savings

Employee Capital Plans in the Form of Insurance - Legal Aspects

Employee Capital Plans (PPK in Polish) are a part of a common system of voluntary pension savings schemes under the third pillar. They are assumed to cover all employees. However, each employee will be able to opt out of the participation in the program.The financial institutions eligible to offer Employee Capital Plans will include investment fund companies, general pension societies and employee pension societies as well as insurance companies. The opportunity to collect capital within the framework of Employee Capital Funds in the form of unit-linked life insurance will have an additional value for the participants, namely an insurance cover. Nevertheless, due to particular regulatory requirements and the difference between the insurance contract and other forms of Employee Capital Funds, it involves certain consequences. The present article is an attempt to address the essential issues concerning Employee Capital Funds offered in the form of insurance, regarding the insurance contract itself, such as insurance coverage or the nature of the contracts for the management and operation of Employee Capital Plans, as well as general matters, which exert an influence on the ECPs provided by insurance undertakings.