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Human Resources Management

Series

2011

Articles 1 - 11 of 11

Full-Text Articles in Labor Relations

Is There Deadweight Loss In Holiday Rewards?, Kevin F. Hallock Dec 2011

Is There Deadweight Loss In Holiday Rewards?, Kevin F. Hallock

Economics Faculty Publications

An interesting and provocative study was conducted by Joel Waldfogel of the University of Minnesota some 20 years ago. He wrote "The Deadweight Loss of Christmas." Waldfogel was not only discussing Christmas but noted that the ideas could apply to other holidays with gift-giving rituals. The study noted that although gift giving is generally applauded by economists since it is a way to help the macro economy, there is another side to the story. A problem with gift giving (or non-monetary rewards) is that the gift giver often does not perfectly know the preferences of the person receiving the gift. …

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Pay System Gender Neutrality, Kevin F. Hallock Nov 2011

Pay System Gender Neutrality, Kevin F. Hallock

Economics Faculty Publications

It was Francine Blau's "Equal Pay in the Office" (1977) that laid out some of the seminal research on gender differences in labor market outcomes. Blau and other pioneering researchers established decades ago that the gender pay gap (then around 40%) could not be ignored by academic economists. Many organizations are concerned with whether their individual pay systems are gender neutral, but it is not easy to test robustly a pay system's gender neutrality. To build such a test requires consideration of several issues, including control variables, occupational patterns, statistical specifications, and the often-overlooked difference between wage and salary income …

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Does More Education Cause Higher Earnings?, Kevin F. Hallock Oct 2011

Does More Education Cause Higher Earnings?, Kevin F. Hallock

Economics Faculty Publications

College graduates earned roughly 67% more per hour than high school graduates in the US in 2010. Those with more education earn more because the world of work measures in some manner that they are simply more productive in dollars and cents terms. Some signaling theory advocates argue that if the return to education were due to learning, then the returns should be smoothly proportional to the time spent in school. However, researchers have detected a larger jump in earnings for those who complete the final year of college. Whether different schools return differently is an extension of the learning …

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Linking Compensation And Job Losses During A Recession, Kevin F. Hallock Jul 2011

Linking Compensation And Job Losses During A Recession, Kevin F. Hallock

Economics Faculty Publications

For more than 60 years, no permanent Lincoln Electric employee has been laid off for lack of work. 2010 marked the 10th consecutive year year that the company increased its dividend and stock price gains have fairly consistently outperformed the S&P 500 during the past five years. For most organizations, when costs need to be cut, shedding some workers is part of the solution. Work Sharing Unemployment Insurance tries to mitigate the negative repercussions of layoffs. Under WSUI, workers are eligible for a prorated fraction of unemployment insurance benefits. Proponents of WSUI contend that hiring, firing, and retraining costs are …

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Does That Pay Practice Really Have Any Impact?, Kevin F. Hallock Jun 2011

Does That Pay Practice Really Have Any Impact?, Kevin F. Hallock

Economics Faculty Publications

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 …

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Pay Ratios And Pay Inequality, Kevin F. Hallock May 2011

Pay Ratios And Pay Inequality, Kevin F. Hallock

Economics Faculty Publications

Some argue that reporting the ratio of CEO pay to that of the median-compensated worker in the organization is useful since it highlights the sometimes large discrepancy between the pay of an average worker and that of corporate executives. One argument against reporting the ratio of CEO pay to median worker pay is that this is much more difficult to calculate in practice than in theory. The hourly earnings of workers at the bottom have been incredibly flat for the last generation. Only the top 5% have seen large gains over time. For CEOs, the gains are substantial. the multiple …

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Motivating With Efficiency Wages And Delayed Payments, Kevin F. Hallock Mar 2011

Motivating With Efficiency Wages And Delayed Payments, Kevin F. Hallock

Economics Faculty Publications

In the delayed payment system, companies motivate workers to work hard year after year by paying them less than the value they create for the company early in the workers' tenure and more than the value they create for the company later in the workers' tenure. With efficiency wages, workers are essentially paid a wage that is higher than the next-best offer they could get. A paper by Alan Krueger found that at company-owned fast food restaurants, employee compensation is higher and the delayed payment profile is steeper than at franchised outlets. In a recent paper, Matthew Freedman and Renata …

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Do Major League Baseball Hitters Come Up Big In Their Contract Year?, Heather M. O'Neill, Matthew J. Hummel Jan 2011

Do Major League Baseball Hitters Come Up Big In Their Contract Year?, Heather M. O'Neill, Matthew J. Hummel

Business and Economics Faculty Publications

In sports, especially baseball, there is a lot of talk about contract year performance. Beginning in spring training and continuing throughout the season, sports journalists and fans converse about how players in the last year of their contract will perform. Experts in the media, often ex-baseball players themselves, speculate contract year players will have break-out seasons in order to secure a better contract in upcoming contract negotiations. This leads to the question: do baseball players increase their effort and performance during their contract year to increase the value of their next contract?

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The Disconnect Between Employer Costs And Employee Value, Kevin F. Hallock Jan 2011

The Disconnect Between Employer Costs And Employee Value, Kevin F. Hallock

Economics Faculty Publications

There is a tremendous disconnect between the cost of compensation to employers and the value employees place on that compensation. Companies pay a lot more for workers than workers see in their paychecks. The average worker in the US costs his/her employee $29.52 per hour. But only $20.50 of that appeared in the worker's paycheck as wage and salary. The other $8.96 is attributable to other employer costs that employees do not immediately see. Of the $8.96, $2.04 is for paid leave, $0.71 is for supplemental pay, $2.60 is for insurance, $1.31 is for retirement savings, and $2.30 is for …

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The Important Role Of Change Management In Environment Management System Implementation, Mary Eileen Graham, S Ronnenberg, F Mahmoodi Jan 2011

The Important Role Of Change Management In Environment Management System Implementation, Mary Eileen Graham, S Ronnenberg, F Mahmoodi

Falk College Research Center

No abstract provided.

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Reemployment Under Userra Sections 4312 & 4313: At Will Employment Vs. Temporary Employment, Richard L. Pate Jan 2011

Reemployment Under Userra Sections 4312 & 4313: At Will Employment Vs. Temporary Employment, Richard L. Pate

WCBT Faculty Publications

As thousands of service members return to the U.S., severe economic conditions render acclimation to civilian life especially difficult. In 2010, as the combat mission in Iraq approached an end, the unemployment rate of Iraq and Afghanistan era veterans had reached 13.1 percent. The Uniform Services Employment and Reemployment Rights Act, 38 U.S.C. §§ 4301-4333 (1994) ("USERRA"), was enacted, in great part, to mitigate harms such as those caused by the aforementioned perfect storm. Among other things, USERRA protects service members by entitling them to reemployment after military service. More specifically, USERRA Sections 4312 & 4313 entitle returning service members …

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