Employer Employee Research Articles

Effects of employees living with an ‘arthritis’ on sickness absence and transitions out of employment: a comparative observational study in the UK

PurposeTo assess sickness absence and transitions from employment for employees with arthritis compared with employees without arthritis over time.MethodsWe use 10 waves of the UK Household Longitudinal Survey (2009–2019). The...

Do hiring strategies change in successive entrepreneurial stints?

AbstractResearch SummaryMost key decisions in startups are linked to their founders, but what entrepreneurs do differently as they launch successive ventures remains poorly understood. Using Danish register data, we investigate how hiring strategies change in successive entrepreneurial stints. We compare the employee sourcing practices of serial entrepreneurs running knowledge‐based startups with those of novice founders in similar industries, who later transition into serial entrepreneurship. We find that serial entrepreneurs, particularly after experiencing a prior failure, engage in pipeline hiring practices (i.e., hiring repeatedly from some external sources) more than their novice counterparts. This finding is robust to different sampling, measurement, and estimation choices. Further investigation into the underlying mechanisms supports the roles of experiential learning and improved employee‐firm matching quality, while excluding alternative explanations.Managerial SummaryHow do hiring strategies evolve across successive entrepreneurial stints? Using employer–employee linked data from Denmark, we investigate the changes in employee sourcing strategies employed by entrepreneurs as they launch successive ventures. We compare the practices of experienced and first‐time founders of knowledge‐based startups and observe a greater tendency to repeatedly hire from some external source organizations (reflected by an increased concentration of hiring sources) among entrepreneurs who have discontinued an underperforming venture. This hiring strategy—known as pipeline hiring—correlates with both higher‐quality hires and improved venture performance. This change in hiring strategy is suggestive of experiential learning. We rule out several alternative explanations and pave the way for future research to further explore the complex impact of entrepreneurial experience on key entrepreneurial strategies.

Entering the mainstream economy? Workplace segregation and immigrant assimilation

Abstract Why do foreign-born immigrant workers often concentrate in low-wage, minority-dense workplaces? Do immigrants’ native-born children—who typically acquire better language skills, education, and country-specific knowledge—experience improved access to workplaces in the mainstream economy? Using economy-wide linked employer–employee administrative data from Norway, we analyze both ethnic and economic workplace segregation across immigrant generations. We find that, on average, 32% of immigrants’ coworkers and 16% of second-generation immigrants’ coworkers have immigrant backgrounds, compared to 7% for natives. In terms of economic segregation, the average percentile rank of coworkers’ salaries is 36, 49, and 52 for immigrants, children of immigrants, and natives, respectively. A formal decomposition analysis shows that differences in employee, workplace, and residential location characteristics collectively explain 54–74% of ethnic and 79–84% of economic workplace segregation for immigrants and their children. Key factors driving this segregation in both immigrant generations include education, occupational attainment, industry of employment, having an immigrant manager, and the concentration of immigrant neighbors. This suggests that both skill-based sorting and network-related processes contribute to immigrant–native workplace segregation. However, children of immigrants’ improved access to less immigrant-dense and higher-paying workplaces, compared to immigrants, is primarily driven by differential skill-based sorting (i.e., higher education and shifts in occupation and industry placement). Our findings reveal a sharp decline in workplace segregation relative to natives as children of immigrants advance into the mainstream economy, highlighting the central role of assimilation in skill profiles for workplace integration across immigrant generations.

Remote employment in the era of modern changes: current legal analysis

The article explores the urgent aspects of remote employment as one of the forms of non-standard employment in contemporary conditions. At first glance, this type of employment offers more flexibility and independence, but in reality, it is associated with numerous challenges and issues. One of the most important aspects is the need for more detailed regulation and governance of remote employment. Adherence to universally recognized labor rights is essential, as the lack of physical contact can lead to various violations in the labor sphere. The current state of legislation has been analyzed and key aspects of problems that need to be resolved to ensure an adequate level of legal protection for employees have been identified. The article particularly expresses the opinion that the existing regulatory legal acts governing the order of remote employment are outdated. Current statistical data and sociological research emphasizing the importance of developing the legislative framework in this area are taken into account. This indicates the necessity for updating these regulations in line with modern realities and challenges posed by contemporary labor relations. Attention is drawn to the rapid development of the digital economy, which underscores the importance of developing relevant legislation. This will not only ensure the dynamic development of labor relations but also contribute to the preservation of employees’ health and safety. Clear regulation of these issues will improve the quality of life for workers and address challenges associated with remote employment. The active participation of Ukrainian companies that implement advanced management practices and experiment with remote employment as one of the alternative forms of employment was also noted. Additionally, the article examines the advantages and disadvantages of remote employment for both employees and employers, considering their views and interests. In general, the article aims to emphasize the importance of legal regulation of remote employment and its impact on the development of modern labor relations. The authors highlight the need to improve legislation in light of current trends and challenges, which will contribute to the stability and development of the labor market amid ongoing technological transformations.

Navigating Employee Employment in Poland: Formal and Financial Considerations

Navigating Employee Employment in Poland: Formal and Financial Considerations

Linked Employer–Employee Data from XING and the Mannheim Enterprise Panel

Abstract The availability of social media data is growing and represents a new data source for economic research. This paper presents a detailed study on the use of data from a career-oriented social networking platform. The employment data are exported from user profiles and linked to the Mannheim Enterprise Panel (MUP). The linked employer–employee (LEE) data consist of 14 million employments for 1.5 million employers and describes around 9 million employee flows. Plausibility checks confirm that career-oriented social networking data contain valuable information about employments and employee flows. Using such platform data provides opportunities for research on employee mobility, networks, and local ecosystems’ role in economic performance at the employer and the regional level.

Innovative approaches to measuring and promoting employee vitality and sustainable employability

Abstract Background Employers find it difficult to develop interventions for vitality and sustainable employability (SE), particularly for employees in low-skilled jobs. Measures based on the employee perspective on SE that would give direction to interventions fall short, and effective programs to improve vitality and SE in this group are lacking. This study aims (1) to get insight into the effect and implementation of an innovative organizational, dialogue-based approach ‘Healthy HR’ (HHR)* to promote job control and SE, and (2) to refine and further validate the Maastricht Instrument for SE (MAISE)-Easy (an HHR tool for needs assessment). Methods (1) An effect evaluation with a pretest-posttest design with a 1 year follow up (N = 71), and a mixed-methods process evaluation were conducted. Data were collected using questionnaires, interviews with employees and employers (N = 26), focus groups (N = 4) and logbooks. (2) A questionnaire containing the MAISE-Easy-items, proxy variables (health and vitality) and demographics was answered by 1223 employees from 7 organizations. Construct validity, reliability and criterion validity were tested through PCA, CFA, Cronbach’s alpha and correlations. Results (1) A higher dose of HHR resulted in better job control and SE (n.s.). HHR had a positive impact on the awareness level of vitality and healthy workplaces of all stakeholders. (2) Reliability, construct and criterion validity of the MAISE-Easy were good, and MAISE-Easy 2.0 was constructed. This tool consists of 8 scales and 20 items divided over 4 areas: (1) Level of SE; (2) Factors affecting my SE; (3) Overall responsibility for SE; and (4) Responsibility for factors affecting my SE. Conclusions MAISE-Easy 2.0 is a valuable, valid and reliable tool in HHR which serves as a needs assessment for SE interventions. The innovative participatory approach HHR can improve job control and SE of employees in low-skilled jobs by giving them an active voice. *doi.org/10.1186/s12889-021-11278-7 Key messages • Healthy HR (HHR) is an effective, organisational dialogue-based approach (online toolkit) to promote job control, vitality and sustainable employability (SE) of employees in low-skilled jobs. • MAISE-Easy-2.0 (Maastricht Instrument for SE) is a new and thoroughly validated HHR tool for needs assessment, which measures SE and the responsibility for SE from the employee perspective.

The work affective well-being under the impact of AI

Artificial intelligence (AI) technology is expected to help enterprises reduce costs and improve efficiency, but it may also threaten the employment of employees. It may form a substitution effect on employees’ jobs and might make them experience negative work emotions. Employees’ work emotions could then affect their innovative abilities, which in turn impacts the innovation ability and competitiveness of enterprises. Therefore, the impact of applying artificial intelligence technology on employees’ work well-being has become a pressing issue for businesses today. Through empirical analysis of 349 questionnaire responses, we found that employees’ STARA awareness negatively predicts their work affective well-being. Job stress mediates the relationship between STARA awareness and employees’ work affective well-being. Psychological resilience moderates the relationship between STARA awareness and job stress, moderates the indirect effect of STARA awareness on employees’ work affective well-being through job stress. Theoretical discussions and analyses of the mechanism through which STARA awareness affects employees’ work affective well-being were conducted based on the Conservation of Resources theory. In practice, we provide valuable insights for employees and enterprises to address the impact of AI, enhance work affective well-being, and strengthen enterprises’ innovation and competitiveness.

Ethnic diversity on boards and its interaction with gender diversity: should they have any beneficial effects on HRM?

PurposeThis study deals with the issue of how ethnic diversity on boards in a given firm may influence its performance in human resource management (HRM). Moreover, the study also tests the interaction between ethnic diversity and gender diversity and examines their joint effect on HRM.Design/methodology/approachBased on prior research, we predict that, with increasing demographic diversity in organizations today, ethnic diversity on boards should have a positive effect on HRM. Moreover, gender diversity, as a most visible dimension of demographic diversity, should have both a direct positive effect and an indirect moderating effect on the relationship between ethnic diversity and HRM. Hierarchical regression analysis was conducted to test the hypotheses.FindingsOur data analyses show empirical evidence supporting our predictions. First, our study shows that employer–employee relationship can be influenced by ethnic diversity on boards. Second, the foregoing analyses highlight the importance of considering the interaction between different dimensions of demographic diversity, such as that between ethnic and gender diversity. With a higher level of gender diversity on boards, the positive effect of ethnic diversity on HRM can become more salient.Originality/valueThis research tests the benefits of ethnic diversity on boards for improving firms’ performance in HRM, thus making a contribution by helping to understand the effects of ethnic diversity in a more comprehensive way. We also document the beneficial moderating effects of gender diversity on boards for the first time.

Between‐firm sorting and parenthood wage gaps in the US service sector

AbstractObjectiveWe assess how the distribution of parents across firms contributes to parenthood wage gaps in a low‐wage US labor market and examine the role of understudied compensating differentials relevant to precarious work.BackgroundIn the United States, parenthood drives a wedge in wages, as mothers often earn less than women without children, whereas fathers typically earn more than men without children. Firms bear influence over setting wages and sorting workers, yet firms are largely omitted from research on parental wage gaps in the United States.MethodWe draw on novel employer–employee matched data on 74,086 hourly service‐sector workers to decompose parental wage gaps into their within‐ and between‐firm components. We leverage uniquely rich data on compensating differentials to test if they sort parents across firms.ResultsWe found that mothers are overrepresented in lower‐wage firms, accounting for 68% of mothers' wage gap. In contrast, fathers' wage gap accrued within firms. We found limited evidence that compensating differentials, even schedule quality, produce parental wage gaps.ConclusionWe show for the first time that in a major US industry, mothers are segregated in low‐paying firms compared to women without children, while fathers are paid more than men without children in the same firms. Our findings largely do not tell a story of parents voluntarily choosing between wages and job quality, instead calling for more research on firm practices.

Estimating labor market monopsony power from a forward-looking perspective

This paper proposes a new approach to estimate the monopsony power of the labor market based on a forward-looking model of firm wage posting and worker job separation. In contrast to the literature, workers make job switching decisions based on firm-specific wage growth trajectories associated with different employers. The model is estimated using a matched employer employee panel data from Germany. The separation elasticity estimated from this model is greater than that from the conventional approach, suggesting that ignoring worker responses to heterogeneous wage growth rates lead to a potential overestimation of the actual monopsony power.

Performance evaluations and employee turnover intentions: Empirical evidence from linked employer–employee data

Performance evaluations and employee turnover intentions: Empirical evidence from linked employer–employee data

The impact of corporate social advocacy on employee trust and distrust: an empirical study of #StopAsianHate

PurposeThis study examines the relationship between corporate social advocacy (CSA) and employee trust and distrust, focusing on perceived employer support for the #StopAsianHate movement. We aim to explore how perceived CSA relates to employee perceptions and engagement in the workplace, answering for the following research questions: How do employees perceive their companies’ engagement in CSA, specifically the #StopAsianHate movement? To what extent do these perceptions influence trust and distrust toward their employers? How do trust and distrust, in turn, affect employees’ workplace engagement?Design/methodology/approachThe study conducted an online survey of 798 full-time employees across various industries in the USA in March 2022. To ensure a diverse and representative sample, the survey targeted demographic representation based on the latest US census data.FindingsCSA initiatives were found to be positively related to both trust and distrust by employees. Trust was significantly positively connected to employee engagement cognitively, emotionally and physically in the workplace, mediating the relationship between CSA and employee engagement.Originality/valueThis study adds to the empirical CSA research on employee–employer relations by incorporating a real-world context of the #StopAsianHate movement and illustrating the complexity of ambivalent CSA perceptions – both trust and distrust. It highlights the importance of understanding these dynamics within corporate advocacy efforts, offering an overview of CSA’s role in shaping workplace relations.

We go way back: Affiliation‐based hiring and young firm performance

AbstractResearch SummaryFounders often tap their prior employment or educational affiliations to facilitate employee mobilization and post‐hiring integration. But, how do these affiliation‐based hiring (ABH) tactics relate to venture performance? We theorize that ABH generally helps founders fulfill relational and resource goals, yet differently depending on the type and proximity of the affiliation they share with new hires. We leverage Danish employer–employee data and test our hypotheses with a sample of 8312 ventures launched across multiple industries and joined by 143,469 employees during 2001–2012. We observe higher profitability, sales levels, and survival rates among ventures that hire from founders' past affiliations, with some nuances. Young ventures perform better when hiring founders' former proximal employment ties in nascent stages and relatively distal education ties as these firms mature.Managerial SummaryFounders often tap their prior professional affiliations—former workplaces and education institutions—to hire, but are there benefits or downsides associated with these affiliation‐based hiring (ABH) tactics? Using a large longitudinal sample of Danish ventures, founders, and hires across multiple industries, we study in depth how different ABH strategies relate to new ventures' profitability, sales, and survival. We generally observe better performance among ventures using ABH tactics, as these seemingly help firms access and retain higher quality employees. However, these relationships vary with the type and proximity of affiliations shared between founders and hires. Ventures perform better when hiring founders' proximal employment ties in the early stages but less so when hiring their schoolmates. Nonetheless, some of founders' education ties become valuable as their firms mature.

Employer cooperation, productivity and wages: new evidence from inter‐firm formal network agreements

AbstractUsing uniquely rich administrative matched employer–employee data for Italy from 2008 to 2018, we investigate the impact of firms' formal network agreements (FNAs) on firm performance and employee wages. We find an overall significant and economically relevant positive effect of FNAs on various measures of firm performance, but there are no tangible benefits for the workers, and wages decrease slightly, on average. There is, however, marked heterogeneity in the impact on both firms and workers. Estimated rent‐sharing equations, as well as other tests that exploit unionization data, suggest that the negative effects on wages can be explained by a decrease in workers' bargaining power following the introduction of FNAs.

The Ripple Effects of Bullying: Impact on Employees and Their Performance

For strongly securing the employer–employee relationship, it is important to have a desirable and positive working environment. This study investigates the impact of workplace bullying on self-concept, employee cynicism and life satisfaction, which effect employees’ performances. The survey has been conducted through the adaptation of standard tools among 200 employees working in various banks like ICICI and Axis to name a few. The analysis of data will be done through G*power software and SmartPLS4 software to apply structural equation modelling. Results revealed that the relationship between workplace and personal bullying on employee cynicism, self-concept and job performance of employees is significant which effect the employee’s satisfaction with life. It develops the turnover intention among employees. This study has very strong and valid implications for management for the employees of the banking sector. It will help in energizing and motivating their workforce more towards effective performances, which will make their well-being stronger. It will be effectively helpful in maintaining a productive working environment by prioritizing their daily role at the workplace. This study validates the relationship among the variables used in the study. It invites more research from a different perspective to identify the impact in understanding the role of workplace bullying which creates deviance among employees.

The labor market effects of facilitating social security contributions under part-time employment contracts: Evidence from Colombia

We examine the impact of homogenizing the tax base between part-time and full-time labor contracts in a context with high informality. Using employer–employee matched administrative records and household survey data, we estimate the effects of a reform that eliminated a wedge in regulatory costs across different work schedules in Colombia, reducing the relative costs of formal part-time employment. We find that the reform increased the probability of entering the formal sector for previously informal part-time workers (the target population). Using pre-reform variation in firms’ demand for workers eligible for the policy, we find a 5.5 % increase in formal employment at firms more exposed to the policy. Mean wages at these firms rose by 0.88 % after the reform relative to those at firms that tend to hire fewer workers with no formal sector experience. Firms with more exposure to the reform also experienced higher churn, consistent with the policy creating incentives for firms to rotate across workers at a faster pace.

Fairness in E-Recruitment: Examining Procedural Justice Perceptions and Job Seekers’ Intentions

Corporate websites are crucial in recruitment, as the prospective applicants’ experiences in digital recruitment may influence their intentions. Therefore, understanding how opportunity-to-perform perceptions (OPP) integral to procedural justice experienced by potential applicants while visiting a corporate recruitment website impact their reactions towards the company can be key. This study aims to elucidate the influence of OPP on applicants’ intentions to apply (ITA) via corporate websites. Specifically, it explores the indirect relationship between OPP during recruitment and ITA one month after visiting a company website, mediated by organizational attractiveness and ITA measured immediately after and one week after the website visit. This multi-wave study collected 260 cases from master’s students in psychology who completed a questionnaire across waves. Hypotheses were tested using the PROCESS macro in SPSS. The findings highlighted a serial mediation pathway, wherein the indirect connection between OPP and ITA after one month was mediated through organizational attractiveness, ITA immediately after, and one week after website visits. The results highlight the importance of enhancing procedural justice corporate websites to influence applicants’ perceptions and intentions positively and improve recruitment outcomes. Future research should explore the effect of long-term justice perceptions as a basis for a sustainable employee–employer relationship.

Injuries at the Work Place: An Examination of the Basis for Claim Under Nigeria’s Employees Compensation Act (ECA) 2010

The Employer employee relationship has been in existence since the time immemorial, Master servant relationship was initially practiced up to the time where such relationship was abolished, which was replaced with an institutionalized relation i.e. Employer employee relations, where each of the parties has his own rights and duties spelt out by the Laws establishing and guiding their relationship. In most cases during the course of this relationship, parties may sustain an injury of different degrees, ranging from partial or permanent disabilities, at some instances to the extent of even loss of life in the course of that employment, depending on the nature of the employment. This work will explore the available statutes ranging from the International treaties which Nigeria happened to be a signatory to, and the other Nigerian legislations, and Case Laws regulating the Employee employer relationship with a view to examining such injuries based on their compensability and what will qualify them to be so i.e. the basis for the claim of damages based on the injuries sustained under the Employee’s Compensation Act 2010, and also to examine how such claims could be made appropriately in accordance with the law. At the end of this work, the Employer and employee would be better educated in the nature of the injuries that attracts compensation as well as what qualified them to be so, and how it could be done in accordance with the law

Market power and wages: evidence from Brazil

PurposeThe paper examines the impact of market power on wages within the context of a developing country, focusing on Brazil.Design/methodology/approachWith access to matched employer–employee data from Brazil, we first characterized the evolution of the local labor market concentration (Municipality Herfindahl–Hirschman Index [HHI]). Then, we built a fixed-effect model with instrumental variables to verify the association between the local labor market concentration and wages. Finally, a difference-in-difference (DiD) was implemented to verify whether a merger transaction impacted the workers’ earnings in the Brazilian banking sector.FindingsThe paper’s findings suggest that there may be a negative relationship between market power and workers’ earnings.Originality/valueThis research conducted an in-depth investigation of the labor market power in a developing country. As far as we know, our work is the first to evaluate the extension of local concentration in Brazilian formal labor markets and to illustrate its evolution over the last decades. Additionally, when going through the effects of market concentration on wages, we use a new identification strategy that explores changes in the HHI that are caused by national trends in an industry as a source of exogenous variation. Finally, the last part of the paper assesses the effects of antitrust policy on the labor market, a kind of investigation that is still scarce.