Abstract

Few organizations take the time to credibly study whether some pay, benefits, work-life balance or other total rewards practices have any impact on the organizations' bottom line or employee outcomes like productivity or turnover. It's too difficult to do well, organizations don't actually want to know the answer, and/or organizations don't have the know-how or time. One successfully executed, evidence-based study of a new compensation practice is Safelite AutoGlass. Edward Lazear compared the productivity change worker by worker, for only those employees present under both pay arrangements. Lazear found that not only did productivity increase after the change from hourly pay to piece rates, but so did total employee pay and profits. HR systems are rich with metrics and existing practices that can provide data for credibly measuring outcomes.

Document Type

Article

Publication Date

6-2011

Publisher Statement

Contents © 2011. Reprinted with permission from WorldatWork. Content is licensed for use by purchaser only. No part of this article may be reproduced, excerpted or redistributed in any form without express written permission from WorldatWork.

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