Do Nonprofits Treat Their Employees Differently? Incentive Pay and Health Benefits

Abstract

We examine how nonprofit, public, and for‐profit establishments vary in the provision of health benefits and insurance and performance‐based incentives using the 2002 National Organization Survey of establishments in the United States. We found that in comparison to for‐profit firms, both nonprofit and public organizations are less likely to use performance‐based incentives, although they provide their employees with better health benefits and insurance. Sectoral differences in the provision of health benefits and insurance and use of performance‐based incentives persist after controlling for correlates of sector that predict these outcomes, including establishment size, independence of establishment, market competition, establishment age, and unionization. We also found trade‐offs between the provision of health benefits and insurance and use of performance‐based incentives. Our results are generally consistent with the prediction from agency theory and also consistent with a view that public and nonprofit organizations are more concerned with the well‐being of their employees.

Checking in on the State of Nonprofit Scholarship: A Review of Recent Research

“…Although the nonprofit field has had its fair share of literature reviews, they have primarily been topical in nature. For example, there have been comprehensive literature reviews of nonprofit advocacy activities (Almog-Bar & Schmid, 2014), value creation (Chen, Ren, Knoke, 2014), volunteer performance (Englert & Helmig, 2018), nonprofit strategies (Laurett & Ferreira, 2018), fundraising (Lindahl & Conley, 2002), revenue structures (Lu, Lin, & Wang, 2019), and commercialization (Maier, Meyer, & Steinbereithner, 2016).…”

Disclosure e influência social na captação de recursos em organizações sem fins lucrativos

“…Outra questão se deve ao fato de que com a necessidade de atrair profissionais de qualidade, normalmente, quando os dirigentes recebem remuneração, mesmo com responsabilidades complexas, o valor tende a ser menor que em organizações com fins lucrativos (Chen, Ren, & Knoke, 2014;Handy, Mook, Ginieniewicz, & Quarter, 2007;Leete, 2006;Preyra & Pink, 2001;Roomkin, 1999).…”

Working conditions and wages

“…SSEOEs typically offer competitive benefits that demonstrate a commitment to employee wellbeing (Chen et al 2014). In some segments of the SSE, the range of employee benefits is comparable to those in the business and public sectors in countries such as Canada, the United States and the United Kingdom (UK).…”