If you pay for skills, will they learn? Skill change and maintenance under a skill-based pay system

Although the use of skill-based pay has increased in popularity, empirical investigations of the effectiveness of this compensation strategy have been scarce. The fundamental premise of skill-based pay is that contingent monetary reward will promote individual learning. The authors empirically exami...

Full description

Saved in:
Bibliographic Details
Published inJournal of management Vol. 34; no. 4; pp. 721 - 743
Main Authors Dierdorff, Erich C, Surface, Eric A
Format Journal Article
LanguageEnglish
Published Los Angeles, CA SAGE Publications 01.08.2008
Sage Publications Ltd
Subjects
Betriebliche Weiterbildung
Compensation
Compensation plans
Labor policy
Learning
Leistungsmotivation
Popularity
Qualifikation
Skill development
Skilled labor
Studies
USA
Vergütung
Wage & salary administration
Wages and salaries
skill change
person-based pay
latent growth analysis
skill-based pay
Online AccessGet full text

Cover

More Information
Summary:Although the use of skill-based pay has increased in popularity, empirical investigations of the effectiveness of this compensation strategy have been scarce. The fundamental premise of skill-based pay is that contingent monetary reward will promote individual learning. The authors empirically examine this essential principle with data spanning 5 years, using latent growth analysis. Results demonstrate that skill-based pay is related to individual skill change and maintenance. Whether or not individuals earn skill-based pay on their initial attempt is associated with subsequent rates of learning. In addition, the frequency with which skill-based pay is received and the total amount earned are both associated with skill development and maintenance.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 23
ISSN:0149-2063
1557-1211
DOI:10.1177/0149206307312507