Employee productivity spillovers generated by incentive schemes

SA Journal of Human Resource Management

Field Value
Title Employee productivity spillovers generated by incentive schemes
Creator van Zyl, Gerhardus Magau, Mpho D.
Subject Human resource management, employment relations, human capital measurement, employee productivity Incentive schemes; fixed-effect panel data estimations; incentive-induced employee productivity spillover impacts; monetary-based incentive schemes; non-monetary incentive schemes; trade unions
Description Orientation: The introduction of various incentive schemes in the South African workplace creates incentive-induced employee productivity spillovers but could differ between industries and geographic areas.Research purpose: The aim of the study was to determine the industry and geographic nature of incentive-induced employee productivity spillovers to inform managerial decision-making on intrinsic and extrinsic motivators.Motivation for the study: The introduction of incentive schemes is an important motivator of employee productivity in the workplace. For this study, it was deemed important to indicate whether incentive-induced employee productivity spillovers differ between industries and geographic areas by taking into consideration firm-size, firm-profitability, different incentive schemes, trade union presence, employee age and skill levels.Research approach/design and method: Fixed-effect panel data estimations were computed to predict incentive-induced employee productivity spillover effects based on secondary firm-based data sets.Main findings: Incentive scheme-induced employee productivity spillover effects were generally similar for all the different industry and geographic areas. The spillovers increased with greater firm-sizes, higher profitability levels, introduction of greater levels of monetary-based incentive schemes (especially for unionised employee segments), and allocation of incentive schemes to the middle- age employee grouping (35 years–55 years) as well as higher skilled employees.Practical/managerial implications: The effective introduction of incentive schemes in the workplace is an important mechanism for creating positive employee productivity spillover effects and it is generally common for all firms irrespective of the industry or geographic area.Contribution/value-add: Improved understanding of incentive-induced employee productivity spillovers in the South African workplace will enable the effective alignment of incentive schemes with firm profitability.
Publisher AOSIS
Contributor None
Date 2024-02-19
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — Fixed-effect panel data estimation
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/sajhrm.v22i0.2240
Source SA Journal of Human Resource Management; Vol 22 (2024); 10 pages 2071-078X 1683-7584
Language eng
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:

https://sajhrm.co.za/index.php/sajhrm/article/view/2240/3619 https://sajhrm.co.za/index.php/sajhrm/article/view/2240/3620 https://sajhrm.co.za/index.php/sajhrm/article/view/2240/3621 https://sajhrm.co.za/index.php/sajhrm/article/view/2240/3622
Coverage — — Middle-age employee grouping (35-55 years) and higher skilled employees
Rights Copyright (c) 2024 Gerhardus van Zyl, Mpho D. Magau https://creativecommons.org/licenses/by/4.0