Bryson, AJ;
Forth, J;
Stokes, L;
(2016)
Are Firms Paying More For Performance?
International Journal of Manpower
, 37
(2)
pp. 323-343.
10.1108/IJM-01-2015-0006.
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Abstract
We investigate changes in the economic importance of performance-related-pay (PRP) in Britain through the 2000s using firm-level data. We decompose the share of the total economy-wide wage bill accounted for by bonuses into the shares of employment in the PRP and non-PRP sectors, the ratio of base pay between the two sectors, and the gearing of bonus payments to base pay within the PRP sector. The growth in the economic importance of bonuses in Britain in the mid-2000s – and subsequent fluctuations since the onset of recession in 2008 – can be almost entirely explained by changes in the gearing of bonus to base pay within the PRP sector. There has been no substantial change in the percentage of employment accounted for by PRP firms; if anything it has fallen over time. Furthermore, movements in the gearing of bonuses to base pay in the economy are heavily influenced by changes in Finance: a sector which accounts for a large proportion of all bonus payments in Britain.
| Type: | Article |
|---|---|
| Title: | Are Firms Paying More For Performance? |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1108/IJM-01-2015-0006 |
| Publisher version: | http://doi.org/10.1108/IJM-01-2015-0006 |
| Language: | English |
| Additional information: | Copyright © 2017 Emerald Group Publishing Limited. All rights reserved. |
| Keywords: | Finance, Surveys, Earnings, Recession, Bonuses, Pay structures, Performance pay |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > School of Education UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education > IOE - Social Research Institute |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1482459 |
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