Personnel knowledge of the pay system, pay satisfaction and pay effectiveness: evidence from Finnish personnel funds

Sweins, Christina; Kalmi, Panu; Hulkko-Nyman, Kiisa

doi:10.1080/09585190802673528

Cited by 13 publications

(9 citation statements)

References 41 publications

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“…It is now more evident that employees have the opportunity to make suggestions on the structure of the reward system within their own organisations (Allen & Killman, 2001). Sweins, Kalmi and Hulkko-Nyman (2009) propose that organisations should be obligated to explain to their employees how the reward system and structure works. Greater knowledge of the system is crucial in ensuring that employees understand what is expected of them.…”

Section: Rewardsmentioning

confidence: 99%

The impact of a total reward system of work engagement

Hoole

Hotz

2016

SA j ind psychol

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Orientation: Work engagement is critical for both employees and employers. With the reported downward spiral of engagement levels worldwide, organisations are recognising that in order to address this, attract best talent and keep employees motivated, they need to shift their attention to total reward strategies.Research purpose: The overall purpose of this study was to explore the relationship between total rewards and work engagement in a South African context and to determine which reward categories predict work engagement. The study further endeavoured to determine whether gender and age had a moderating effect on the relationship between total rewards and engagement.Motivation for the study: Statistics report that less than 30% of all working people are optimally engaged in their work. Considering that individuals spend more than a third of their lives at work committing themselves emotionally, physically and psychologically – research indicates that employees are no longer satisfied with traditional reward systems and want to feel valued and appreciated.Research approach, design and method: In this quantitative, cross-sectional research design using a non-probability convenience and purposive sampling strategy, 318 questionnaires were collected and analysed from financial institutions in Gauteng in which opinions were sought on the importance of different types of rewards structures and preferences, and how engaged they are in their workplace. The 17-item UWES and Nienaber total reward preference model were the chosen measuring instruments.Main findings: A small statistically significant correlation (r = 0.25; p < 0.05; small effect) was found between total rewards and work engagement, and 12% of the variance of work engagement was explained. Only performance and career management significantly predicted work engagement.Practical/Managerial implications: Although small, the significant correlation between total rewards and work engagement implies that total rewards are important motivators for employees in the workplace. Of the total rewards scales tested, only performance and career management significantly predicted work engagement, suggesting that more research is needed. Organisations seeking to implement total reward strategies should pay specific attention to which strategies have an impact on work engagement.Contribution/Value-add: Organisations must take cognisance that factors such as performance and career management significantly predicted work engagement and should be considered as part of their total reward offerings.

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Section: Rewardsmentioning

confidence: 99%

The impact of a total reward system of work engagement

Hoole

Hotz

2016

SA j ind psychol

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“…Earlier studies on Finland have focused on more limited sets of financial participation practices (e.g. Piekkola 2005;Jones et al 2006; Kauhanen and Piekkola 2006;Sweins et al 2009). By assembling new and wideranging data on financial participation practices in Finnish manufacturing companies, we undertake the most comprehensive evaluation of the prevalence and determinants of financial participation for Finland to date.…”

Section: Introductionmentioning

confidence: 99%

“…Personnel funds differ from all other schemes in the sense that they are tightly regulated 1 For a closer description on personnel funds, see Sweins et al (2009). 5 and supervised by the Ministry of Labour. The main idea of the funds is that they receive payments (profit-shares) according to specified performance criteria.…”

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confidence: 99%

Financial participation in Finland: incidence and determinants

Jones

Kalmi

Kato

et al. 2012

The International Journal of Human Resource Management

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Abstract:We provide the first comprehensive analysis of financial participation in Finnish manufacturing companies. Compared to many developed economies, the incidence of profit sharing in Finland is found to be relatively high. Cash-based profitsharing (CPS) schemes are the most commonly used method of financial participation, and around 40% of manufacturing companies had them in 2005. Share-based schemes and personnel funds are much less common. Moreover, CPS schemes were growing fast in the early 2000s, while the number of other forms of financial participation had stagnated. In analyzing the determinants of financial participation, stakeholder ownership stands out. Firms that are owned by the state or co-operatives have over a 90 % likelihood of having financial participation schemes, whereas the likelihood for other firms is only around 40%. Firms mainly owned by management are less likely to offer financial participation. The evidence of complementarities with other management practices is fairly weak, although there is some evidence that higher levels of workplace training and higher computer use are associated with financial participation.

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“…In a study by Anvari et al (2011), the authors found a positive relationship between strategic compensation practices and perceived fulfilment of psychological contract. Sweins et al (2009) proposed that organisations should be obliged to explain to employees how their reward system works, as knowledge of the system is crucial in ensuring employees commitment (Hoole, Hotz, 2016). In Nigeria, Maycock (2014) empirically found that employees prefer working with individual performance related pay than in teams, and that performance related pay improved individual and organisational performances.…”

Section: Empirical Studiesmentioning

confidence: 99%