Remuneration Policies Research Articles

A Study on Compensation and Reward System and Its Impact on the Motivational Level of Employees

The purpose of this study is to investigate how reward and compensation schemes affect worker motivation while emphasizing the need to humanize the workplace. One of the most important factors influencing employee behavior and satisfaction is compensation, which includes both monetary and non-monetary benefits. To promote long-lasting motivation, firms must take into account comprehensive strategies for worker recognition, well-being, and personal development in addition to monetary incentives. The study explores a range of pay approaches, including more creative, customized reward schemes and more conventional salary-based systems. It also highlights the necessity of humanized remuneration policies that take into consideration workers' participation, company culture, and unique requirements. Utilizing motivational theories like Herzberg's Two-Factor Theory and Maslow's Hierarchy of Needs, the study looks at how various incentive structures affect both intrinsic and extrinsic motivation

CORPORATE GOVERNANCE REFORMS IN THE BANKING SECTOR: ENHANCING STABILITY AND PROTECTING DEPOSITORS& INTERESTS

The global financial crisis of 2008 exposed significant weaknesses in the corporate governance practices of banks, leading to excessive risk-taking, lack of oversight, and eventual failures. In response, corporate governance reforms have been implemented in the banking sector to enhance stability, restore public confidence, and protect the interests of depositors. Effective corporate governance ensures that banks are managed responsibly, aligning the interests of various stakeholders. Key areas of focus for these reforms include board composition and effectiveness, risk governance and management, remuneration policies, internal controls and auditing, transparency and disclosure, and stakeholder engagement. Reforms emphasize the importance of having a diverse and independent board, robust risk management frameworks, aligning executive compensation with long-term performance, strengthening internal controls and auditing processes, enhancing transparency and disclosure requirements, and engaging with stakeholders, including depositors. Initiatives such as the Basel Committee on Banking Supervision's guidelines and the European Union's Capital Requirements Directive IV (CRD IV) have aimed to strengthen governance frameworks and promote best practices within the banking industry. These reforms mandate the establishment of dedicated risk committees, stress testing practices, clawback provisions in remuneration structures, and the implementation of effective compliance and auditing functions. Effective implementation of corporate governance reforms is crucial for enhancing financial stability, mitigating systemic risks, and protecting depositors' interests. By promoting responsible and ethical practices, strengthening oversight mechanisms, and aligning incentives with long-term sustainability, these reforms aim to restore public confidence in the banking industry and contribute to the overall resilience of the financial system. Keywords: Corporate Governance, Banking Regulations, Risk Management, Transparency, Financial Stability

Orchestrating public reforms through joint organizations: the case of a new remuneration policy in Belgian healthcare

ABSTRACT While remuneration policies in the public sector are a powerful lever for attracting and retaining qualified staff, they are known to be notoriously difficult to change. This paper sets out to unveil how remuneration reforms unfold by exploring the case of Belgian healthcare, in which a sectoral organization jointly managed by employers and labour unions implemented a new compensation framework. Two contributions emerged from this study. First, the paper emphasizes the strengths and challenges of joint organizations in orchestrating public reforms. Second, the tensions between political objectives, managerial rationalities, and workers’ expectations that arise when transforming remuneration policies are highlighted.

Employees’ facilitative allowances on the performance of commercial state corporations in Kenya

This study examined the effect of employees’ facilitative allowances on the performance of commercial state corporations in Kenya. Despite their mandate, many commercial state corporations have consistently underperformed, raising concerns about their continued existence. Scholarly research on whether employees’ facilitative allowances structures and their implementation affect the performance of commercial state corporations in Kenya is lacking. The study draws on theories such as Resource-based theory, Principal Agency Theory, Dynamic capability theory, and Stakeholder Theory. A survey research design was employed, targeting 612 managers from 68 commercial state corporations in Kenya. The sample size of 242 managers was determined using the Yamane sampling formula. The research instrument demonstrated high reliability and validity. Inferential and descriptive statistical analyses were performed on the data collected, including multiple regression models and hierarchical regression for moderation analysis. The results revealed that employees’ facilitative allowances significantly and positively influenced the performance of commercial state corporations. These findings emphasise the importance of employee facilitative allowances in enhancing the performance of commercial state corporations. Recommendations include prioritising facilitative allowances and the implementation of remuneration policy guidelines for improved performance. Overall, this research offers significant insights into the influence of employees’ facilitative allowances on commercial state corporations’ performance in Kenya.

The effect of employees’ health benefits on the performance of commercial state corporations in Kenya

This study sought to assess the effect of employees’ health benefits on the performance of Commercial State Corporations in Kenya. Commercial state corporations are established by the government to offer efficient and effective citizen service delivery whilst surrendering back investment income at the end of each financial year. Despite this, most of them have performed dismally over the years, questioning their justification for continued existence. A survey research design was used to conduct this study, targeting 612 managers of various cadres in the 68 commercial state corporations in Kenya. The Yamane sampling formula was used to arrive at a sample size of 242 managers in these corporations. Data collected through structured questionnaires was analysed using both inferential and descriptive statistics. Multiple regression models and Hierarchical regression were used to test hypotheses for moderation. The outcomes of the hierarchical regression model on all the variables revealed that employees' health benefits (β= 0.138, p= 0.000, p<0.05) had a significant positive relationship with the performance of commercial state corporations. These findings contribute novel insights into the influence of employee compensation on the performance of commercial state corporations. The study concluded that employee compensation affects the performance of commercial state corporations and that remuneration policy guidelines strengthen the positive linkage between employee compensation and performance outcomes. The study recommended that commercial state corporations should give higher priority to employee’s health benefits and Remuneration policy guidelines as they are crucial in enhancing their performance.

Gender differences in executive compensation in Spain

PurposeIn the context of sustainable development goal 5 of the United Nations 2030 Agenda: “Achieve gender equality and women’s empowerment”, where gender equality is not only a matter of justice but also essential to achieve sustainable development, this paper aims to examine the gender pay gap in executive director compensation and the influence of female board representation and participation in nomination and remuneration committee (NRC) on this gap in Spanish listed firms over the period 2012–2022.Design/methodology/approachThe analysis is conducted using a data set created by the authors, which includes executive director compensation data for 164 unique firms. This data set comprises 128 distinct observations for a given firm and year for women, and 2,333 observations for men. The authors estimate ordinary least squares models, clustering standard errors by executive. The authors use Oaxaca-Blinder decomposition to decompose gender differences in compensation into differences in the characteristics of men and women and differences in the return on the same characteristics.FindingsThe authors find evidence of pay penalty for female executive directors compared to male counterparts. After controlling for firm, board and executive characteristics, the authors find that women earn 27% less than comparable men. The penalty is lower in companies with a higher share of women on the compensation committee, suggesting that women’s participation plays a role in setting a more equal remuneration policy. The gender gap in executive compensation narrows over time due to a substantial reduction of the differences between men and women in both characteristics and the return on these characteristics.Originality/valueThis study is one of the few analysing the gender gap in executive director compensation and its evolution in Spain. It specifically explores how gender diversity on both the board and the NRC impacts this gap. The analysis is focused on the most recent period characterized by important efforts to promote gender diversity.

Corporate governance and financial fraud occurrence – case study on Romanian companies

PurposeThe aim of this study is to approach the way in which corporate governance influences the occurrence of financial fraud, as expressed by the M-Beneish score. In order to get further into the topic, we have first computed a corporate governance score based on the comply-explain statement and then selected a few elements that are part of the corporate governance reporting: equilibrium of board members (EQUIL), independence of board members (INDEP), selection of the board members (NOM), remuneration policy (REM), audit committee (AUDIT) and the proportion of female directors on boards (GenF). They were tested, one by one, using the financial fraud score to see the way in which they interact.Design/methodology/approachThe study is conducted on a sample of 65 companies listed on the Bucharest Stock Exchange (BSE) for the 2016–2022 period. The data were processed using three-stage general least square [general least squares (GLS), with iteration, igls and option] with a common first-order panel-specific autocorrelation correction, so as to explain how a poor adoption of the corporate governance score and its elements has a negative implication for the M-Beneish score, controlling for the auditor opinion, type of auditing company and if the company is privately owned.FindingsThe results support most of our research hypothesis, revealing that a poor adoption of the corporate governance score and its components – AUDIT, EQUIL, INDEP and GenF – negatively influences the M-Beneish score, i.e. a low corporate governance score will lead to an increase in financial fraud. This is an encouraging aspect, for an improved adoption of the corporate governance principles reduces the occurrence of financial fraud.Research limitations/implicationsThis is a study that concerns the relationship between corporate governance and financial fraud for the case study for Romania.Practical implicationsThe study highlights the importance of adopting the corporate governance code applied to the Romanian business environment. By measuring the presence of financial fraud appearance through the M-Beneish score, we have managed to outline the negative relationship between the two components. Thus, it is an important aspect of which companies should take account, so they will have long-term benefits and ensure the continuity of the business.Social implicationsThe policy implications of this project are for policymakers, so that they will understand how a good corporate governance mechanism will enhance high-performing businesses. Different aspects regarding corporate governance were validated and are in the process of being validated. Managers can extract and try to understand and apply the good characteristics of corporate governance for the well-being of their companies. At a broader level, the macroeconomic environment will increase its own well-being while encouraging market players to enhance qualitative corporate governance reporting. There is no doubt that corporate governance has a positive impact on businesses.Originality/valueThe study highlights the importance of adopting the corporate governance code as applied to the Romanian business environment. By measuring the occurrence of financial fraud using the M-Beneish score, we have managed to outline the negative relationship between the two components. Therefore, this is an important aspect that companies should take into account in order to have long-term benefits and ensure the continuity of their business.

Fluid professional boundaries: ethnographic observations of co-located chiropractors, osteopaths and physiotherapists

BackgroundChiropractors, osteopaths and physiotherapists (COPs) can assess and manage musculoskeletal conditions with similar manual or physical therapy techniques. This overlap in scope of practice raises questions about the boundaries between the three professions. Clinical settings where they are co-located are one of several possible influences on professional boundaries and may provide insight into the nature of these boundaries and how they are managed by clinicians themselves.ObjectivesTo understand the nature of professional boundaries between COPs within a co-located clinical environment and describe the ways in which professional boundaries may be reinforced, weakened, or navigated in this environment.MethodsDrawing from an interpretivist paradigm, we used ethnographic observations to observe interactions between 15 COPs across two clinics. Data were analysed using reflexive thematic analysis principles.ResultsWe identified various physical and non-physical ‘boundary objects’ that influenced the nature of the professional boundaries between the COPs that participated in the study. These boundary objects overall seemed to increase the fluidity of the professional boundaries, at times simultaneously reinforcing and weakening them. The boundary objects were categorised into three themes: physical, including the clinic’s floor plan, large and small objects; social, including identities and discourse; and organisational, including appointment durations and fees, remuneration policies and insurance benefits.ConclusionsPhysical, social, organisational related factors made the nature of professional boundaries between COPs in these settings fluid; meaning that they were largely not rigid or fixed but rather flexible, responsive and subject to change. These findings may challenge patients, clinicians and administrators to appreciate that traditional beliefs of distinct boundaries between COPs may not be so in co-located clinical environments. Both clinical practice and future research on professional boundaries between COPs may need to further consider some of these broader factors.

Relationship of Remuneration Policy to the Performance of Specialist Doctors in the Kramat Jati Regional General Hospital in 2022

The number and types of hospitals in Jakarta are constantly increasing, causing competition for customers or patients. Hospitals owned by the DKI Jakarta provincial government face challenges in providing specialist doctor services with the best performance for the community, this is closely related to the rewards offered to specialist doctors. One of the regional government's efforts to improve the performance of specialist doctors is by issuing regulations on remuneration for hospitals. This research aims to determine the relationship between remuneration policy and the performance of specialist doctors at Kramat Jati Regional Hospital. The research was conducted using a case study method with a qualitative approach. The research was conducted on 11 specialist doctors using questionnaires and in-depth interviews with informants. The results of the study found that the implementation of the remuneration policy at Kramat Jati Regional Hospital increased the average income of specialist doctors by 42.9% of the income of specialist doctors before the implementation of remuneration. This study also found that the implementation of remuneration policies at Kramat Jati Regional Hospital was related to the quantity performance of specialist doctors.

THE REMUNERATION-PERFORMANCE RELATIONSHIP IN CORPORATE GOVERNANCE: EVIDENCE FROM BOARD MEMBERS’ REMUNERATION AND FIRM PERFORMANCE

The board of directors is an important corporate governance mechanism as it is responsible for the operation of a firm and protects the value of the investment made by investors in the firm. Therefore, board members should be supplied with an appropriate incentive to properly discharge their duties. One of the most important incentive mechanisms is remuneration. This study aims to reveal the effect of board members’ remuneration on the firm performance. Regression analysis was performed to test the hypotheses. 210 firm-year observations obtained from 76 non-financial firms traded in the BIST 100 between the 2018-2020 period were used. The indicators of firm performance return on assets, return on equity, and earnings per share. As a consequence of the study, the relationship between board members' remuneration and firm performance was found to be positive and statistically significant. These results show that the board members' remuneration is a strong incentive used to increase the firm performance and that a suitable remuneration policy should be established for directors.

Exploring turnover intentions of employees at a South African government education council

Orientation: Public sector organisations in South Africa, including educational institutions, experience high employee turnover. There is a general need for public sector organisations to retain valuable talent.Research purpose: This study aimed to explore the reasons behind turnover intentions at the government education council.Motivation for the study: Studies on employee turnover in the public sector focused on government departments and municipalities, with a scarcity of research studies on government education councils.Research approach/design and method: An exploratory qualitative research approach was followed which allowed for the usage of semi-structured interviews to collect data from employees (N = 11). Data were analysed using content analysis. The inductive coding method was used to get to themes and subthemes.Main findings: Employees may leave the government education council because of the micromanagement leadership styles, lack of trust by management, inadequate communication, poorly implemented performance management system, persistent workload, low pay and lack of work–life balance. However, they currently remain within the employment of the council because of its reputation, sense of belonging (teamwork), conducive work environment and career growth prospects.Practical/managerial implications: The government education council should promote autonomy and prioritise leadership skills, team building and other interventions to enhance trust, communication and work-life balance. The government education council should ensure the buy-in of the performance management system and its remuneration policy by employees.Contribution/value add: This study’s findings provide insights into the turnover intentions of employees at the government education council and then assist the organisation in strengthening its retention strategies.

Achieving professional qualifications using micro-credentials: a case of small packages and big challenges in higher education

PurposeThis study examined the factors impeding the implementation of micro-credentials and accepting it as a credible source of earning professional qualifications and certifications necessary for pursuing higher education or other career goals.Design/methodology/approachThe factors were identified by reflecting on the recent literature and Internet resources coupled with in-depth brainstorming with experts in the field of micro-credentials including educators, learners and employers. Two ranking methods, namely Preference Ranking for Organization Method for Enrichment Evaluation (PROMETHEE) and multi-objective optimization based on ratio analysis (MOORA), are used together to rank the major challenges.FindingsThe results of this study present that lack of clear definitions, ambiguous course descriptions, lack of accreditation and quality assurance, unclear remuneration policies, lack of coordination between learning hours and learning outcomes, the inadequate volume of learning, and lack of acceptance by individuals and organizations are the top-ranked and the most significant barriers in the implementation of micro-credentials.Research limitations/implicationsThe findings can be used by educational institutions, organizations and policymakers to better understand the issues and develop strategies to address them, making micro-credentials a more recognized form of education and qualifications.Originality/valueThe novelty of this study is to identify the primary factors influencing the implementation of micro-credentials from the educators', students' and employers' perspectives and to prioritize those using ranking methods such as PROMETHEE and MOORA.

Legal Culture in the Management of Life Insurance Companies in Indonesia

In the last ten years, people have been made uneasy by various cases of life insurance companies that have failed to pay. Moreover, the involvement of prominent companies in these cases reduced public trust in them. In these cases, the influence of legal culture is apparent in the management of life insurance companies. Therefore, this study aims to investigate the factors that caused the life insurance companies to fail to pay, the legal culture underlying the management of these companies and the efforts that must be made to improve this culture. The research method employs normative legal research, supported by empirical legal research. The factors causing life insurance companies to default consist of fraud in the company’s financial statements, unreasonably high-interest rates on unit-linked insurance products, and a lack of optimal application of risk management in life insurance companies. The legal culture of their management has not developed in a better direction, leading to an inability to fulfill their obligations. Examples of steps to improve the legal culture include conducting education and training for life insurance company managers, making remuneration policies to encourage behavior that follows the prudential principle, and creating guidelines for managers on ethical business values and conduct.
 Keywords: legal culture, life insurance companies

A Short Glance on Public Enterprises in Nepal

This article deals with Public Enterprises, types, performances, and its reflections on the Nepalese context. Public Enterprises are entities with specific objectives involving government ownership and control through public authority. PEs have been established in Nepal for economic and balanced development through performing specific business functions. This article claims that the number of PEs grew from the period of Nepal’s first five-year plan, which was reduced after adopting liberalization and privatization policy in the era of multiparty democracy. The main objective of this article is to trace out the scenarios of Public Enterprises, its challenges and their opportunities. It has applied the review-based analysis as a methodological part. Most PEs are running under huge losses, very few have operating excellent performances and public notice. The major challenges for PEs in Nepal are heavy political interference, government and remuneration policy, lack of transparency and accountability, low commercial expertise, and nepotism with bureaucratic organizational structure. The PEs are a tool for implementing government policy as well as an agent for market control and competition in a positive aspect. Improvement in the fundamentals of PEs is necessary for them to sustain in a competitive market and be serviceable to society. Efficiency-based remuneration and recognition motivate the individual to take risks and contribute to the national economy.

Jiangxi Copper Group Remuneration Policy Study

China's copper industry is an important industry in the national economy, with 91% of 124 industries related to copper. Jiangxi Copper Group has the highest self-sufficiency rate of copper concentrate in China, and is the largest and most modern copper production and processing base in China, and an important production base for gold, silver, selenium, tellurium, rhenium and other rare precious metals, and sulfur chemical industry. 1997, Jiangxi Copper Corporation was listed on the Hong Kong stock market, and in 2008, the management bodies of Jiangxi Copper Group Company and Jiangxi Copper Corporation were merged into a single one, and the company was listed as a whole. In 2008, Jiangxi Copper Group Corporation and Jiangxi Copper Corporation realized the merger of their management bodies into one, realized the overall listing, and established a modern management system and operation mechanism with the division system as the basic framework. This paper analyzes the remuneration policy of Jiangxi Copper Group by studying the remuneration status of its executives and employees, and compares it with other companies in the same industry to put forward development suggestions.

The Impact of Remuneration as Reward System on Job Satisfaction within the Hospitality Industries in Ghana

This research used a qualitative study method which is to draw analysis from inductive angles. It has the following objectives as first to determine the impact of remuneration has on job satisfaction of employees, secondly, to further understand whether there is equity in remuneration policies that are applied to employees in general, and thirdly, to establish other remuneration systems that exists in most hospitality pay policies. The aim of this research is to assess the impact of remuneration and job satisfaction among hotel workers, there is the need to gather data on remuneration and job satisfaction of hospitality service in Ghana. This is an inductive study based on non-probability sampling technique. A quota sampling of 50 AH Hotel workers responded to the questionnaire. Quota sampling is a non-probability sampling method that relies on the non-random selection or convenience of a predetermined number or proportion of units. The research designed closed ended and open questions in the interview questionnaire (as data collection instrument in qualitative nature) which the respondents gave their feedback. The research findings shows that remuneration payment has greater impact on job satisfaction because many of the employees were happy with their salaries/wages. This is the more reason why they are retained as loyal staff with good morale behaviours, punctuality at work, and are also, good team players.

THE EFFECT OF PSYCHOLOGICAL EMPOWERMENT ON ORGANIZATIONAL CYNICISM: A RESEARCH ON UNIVERSITY STAFF

Cynicism is a concept used to describe people who are dissatisfied, constantly critical, and full of negative thoughts. Organizational cynicism, on the other hand, is defined as harsh criticism and negative beliefs/feelings about the organization, either openly or secretly. The developing technology and competitive environment, economic crisis, mass layoffs, insufficient remuneration policy and long working hours cause employees to develop negative attitudes towards their organizations. Since it causes individuals to develop a series of unconstructive feelings towards the organizations, it can be said to be associated with low productivity and loss of income directly. Organizational cynicism is conceptualized in three dimensions as “cognitive, affective, and behavioral”. Psychological empowerment in organizations can be defined as “increased intrinsic task motivation”, which is the perception of helping employees decide on their job-related roles, the meaningfulness of work, and influencing important decisions. Empowerment, as a motivational construct, consists of four dimensions: “meaning, competence, self-determination, and impact”. The hypotheses of the research were formed with the proposal that the dimensions of psychological empowerment affect negatively the dimensions of organizational cynicism. The sample of the research consists of administrative staff working at a university in Istanbul. According to the results obtained in this study, 8 out of 12 hypotheses were accepted and 4 were rejected. The "competence" and "impact" subdimensions of empowerment did not have a significant relationship with the "behavioral" dimension of cynicism, while the "competence" dimension of empowerment had a positive, not negative, relationship with “cognitive and affective dimensions” of organizational cynicism.

Ways to improve land assessment methods in Azerbaijan

Motives: The article examines various approaches to improving the assessment of agricultural land in Azerbaijan. The quality, potential productivity, and normative price (value in monetary terms) of farmland need to be determined to increase production and competitiveness of agricultural products, to establish favourable land relations that meet modern requirements, and to promote efficient land use. The existing methods of assessing the quality and economic value of farmland for the needs of the land cadastre and determining the normative prices of land do not fully correspond to reality. Different and often contradictory approaches to land assessment have been proposed.Aim: The aim of this study was to optimize the methods of assessing the quality and economic value of agricultural land, determining the normative prices of land, and evaluating potential land productivity in view of modern requirements.Results: Improvements in land valuation will promote reliable assessments of agricultural development and the establishment of efficient farming systems; they will improve agricultural land-use efficiency and reliable determination of normative prices in market transactions involving agricultural property. These methods can be widely used to plan agricultural production, evaluate the operations of various types of farms, improve remuneration policies in the farming sector, determine the optimal scope of farming operations in view of natural conditions and economic factors, and resolve other issues to promote the development of agricultural production.

Talent management and firm performance in emerging markets: a systematic literature review and framework

PurposeThe purposes of this study are to (i) systematically review the state of the existing research of talent management (TM) in emerging markets and its connections with firm performance; (ii) recap the results in an integrative and multidisciplinary framework and (iii) recognize potential research contradictions and gaps that offer avenues for future study.Design/methodology/approachIn this study, the authors apply a systematic literature review (SLR) methodology to review 31 peer-reviewed articles published in highly ranked journals (ABS journals list – ranking 3, 4 and 4*) over more than two decades.FindingsThis review shows that the state of the current research of TM in emerging countries and its connections with firm performance is characterized by complexity and fragmentation within the different countries investigated. This review summarizes and highlights five central categories of TM in emerging markets. In order to ensure that the field of research investigated continues to be relevant to diverse constituents, the authors incorporate the various prominent research perspectives into an integrative framework structured at macro (economies/countries), meso (industries) and micro (individuals/organizations) levels.Practical implicationsThis research provides guidance for chief executive officers, chief financial officers and human resource directors in emerging countries to develop TM within their organization in order to capture its relevant aspects, from a strategic (purposeful and competency modeling), organizational (talent planning and career track planning) and financial point of view (remuneration policy and firm performance).Originality/valueThe authors offer a first holistic overview of the features of TM in emerging markets and also introduce firm performance. The authors present an integrative multidisciplinary framework that can serve as a starting point of a summary of areas covered by the literature. Finally, the authors identify several knowledge gaps, emerging topics and limitation of current research, through which ideas for future investigations are offered.

A Field Research on the Remuneration Policy of Occupational Health And Safety Professionals

İş sağlığı ve güvenliği profesyonellerinin ücretlerinin verdikleri hizmet karşılığında bir güvence altında ödenmesi oldukça önemlidir. Bu çalışmada, iş sağlığı ve güvenliği alanında görev yapan profesyonellerin ücretlendirilmelerine dair veriler incelenmiştir. Araştırma verileri 217 katılımcıdan anket yöntemi ile toplanmış olup, Microsoft Office Excel 2016 ile analiz edilmiştir. Bu çalışma sonucunda elde edilen bulgulara göre, iş sağlığı ve güvenliği profesyonellerinin ücret talepleri ve ücretlerinin ödenme şeklinin hâlihazırda alınan ücret ve bu ücretin ödeme şekli ile farklılıklar olduğu ve ücretlerin bir oluşturulacak bir fon sistemi veya ücret havuzundan ödenmesi konusunda katılımcıların fikir birliğinde oldukları saptanmıştır.