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<strong>Orientation:</strong> The paper dealt with the application of a suitable econometric estimation model or procedure to measure the relation between employee-remuneration gaps and labour productivity in the Gauteng manufacturing industry.<p><strong>Research purpose:</strong> The aim of the article was to estimate the sign and magnitude of the relation between employee-remuneration gaps and labour productivity econometrically. The Gauteng manufacturing sector was used as a case study.</p><p><strong>Motivation for the study:</strong> The empirical research was deemed necessary given the current important debate on the perceived impact and fairness of expanding employee-remuneration gaps in the South African workplace. International studies have been conducted on this particular topic but very limited empirical research has been published regarding the South African situation.</p><p><strong>Research design, approach and method:</strong> A log-linear two-step OLS estimation was used to estimate the sign and magnitude of the relation between employee-remuneration gaps and labour productivity. Employee remuneration gap-labour productivity (ERGLP) indicator coefficients were estimated, taking into consideration employee characteristics, skill levels and business or economic uncertainty.</p><p><strong>Main findings:</strong> The signs of the ERGLP indicator coefficients were positive in terms of all the categories, indicating a positive relation between employment-remuneration gaps and labour productivity (at varying magnitudes). The squared ERGLP indicator coefficients confirmed the existence of diminishing marginal productivity characteristics after an optimal employee- remuneration gap level.</p><p><strong>Practical/managerial implications:</strong> It is recommended that, given the unionised nature of the lower-skilled employee segment in South Africa, greater labour-productivity gains for organisations would stem from a more dispersed employee-remuneration regime for the higher-skilled employee segment (albeit in a less uncertain business or economic environment).</p><p><strong>Contribution/value-add:</strong> An econometric estimation procedure that can be applied to the measurement of the productivity gains of employee-remuneration gaps for different industries in the South African economy was established.</p><p><strong>How to cite this article:</strong> Van Zyl, G. (2010). Does employee remuneration dispersion in the South African economy enhances labour productivity? The Gauteng manufacturing industry as a case study. <em>SA Journal of Human Resource Management/SA Tydskrif vir Menslikehulpbronbestuur, 8</em>(1), Art. #286, 5 pages. DOI: 10.4102/sajhrm.v8i1.286</p>

Orientation: The article dealt with the estimation, computation and interpretation of the relative productivity contributions of different age-skill categories. Research purpose: The aim of the article was to estimate and compute, (1) relative productivity contributions and (2) relative productivity contribution–employee remuneration cost levels for different age-skill categories.Motivation for the study: The research was deemed necessary given the current debate on relative productivity levels and possible changes to the retirement age in the South African labour market. No real research in this regard has been published regarding the South African labour market situation.Research design, approach and method: A less restrictive production function was used, allowing for the simultaneous estimation and final computation of relative labour contribution levels of different age-skill categories.Main findings: The lower-skilled segment produced significantly smaller productivity contributions and the relative productivity contribution–employee remuneration cost ratios of the 55 years and older age group were superior in the higher-skilled segment but, at the same time, the lowest in the lower-skilled segment.Practical/managerial implications: It is recommended that human resource practitioners (given the perceived rigidity of labour legislation) implement and maintain structures that promote higher productivity levels for all age-skill categories in the workplace.Contribution/value-add: An estimation procedure, which can be applied to the measurement of the relative productivity contribution of different age-skill categories, has been established.

The aim of this article is to determine the impact that various incentive schemes have on employee productivity in the South African workplace. A firm-based model is used to estimate the dimensional relationships (different skill levels, gender-mix, firm size, firm-sponsored training incentives) of the incentive scheme-employee productivity link. The main conclusions of the study are, firstly, that finance-based incentive schemes (especially performance-linked bonus schemes) have a greater positive impact on employee productivity for the higher-skilled segment, secondly, that non-financial incentives (especially consultative committee incentive schemes) have a greater positive impact on employee productivity for the lower-skilled segment, and, finally, that greater female participation in the workplace and the awarding of incentive schemes is important if general employee productivity is to be enhanced.

Orientation: Human capital (HC) is a key dimension of intellectual capital (IC) that creates shareholder value when integrated with structural capital (SC) and relational capital (RC). The disclosure of HC reveals how the human resource (HR) practices support business growth.Research purpose: The primary focus of this study was to investigate the extent of how human capital disclosure (HCD) could predict organisational performance (expected future earnings) of the Johannesburg Stock Exchange (JSE)-listed companies.Motivation for the study: Human capital disclosure reduces information asymmetry, predicts future business performance and improves the investors’ buy-sell-hold decisions.Research approach/design and method: A causal, comparative design was applied quantitatively in a cross-sectional survey of 150 top- and low-performing JSE-listed companies sampled based on their market capitalisation. A self-constructed disclosure index with a seven-point scoring system was developed to examine the extent of disclosure across 81 items. Subsequently, multiple regression analysis was computed to test the relationship between the dependent and independent variables.Main findings: Human capital disclosure was associated with both the market capitalisation and book value. Overall, no mediation of human resource risk disclosure (HRRD) against organisational performance was found. Lastly, information disclosed on gender diversity yielded the interaction effect with both structural capital disclosure (SCD) and relational capital disclosure (RCD) but not with HCD.Practical/managerial implications: Human capital disclosure identifies key HR practices that drive organisational performance and create shareholder value. This information can potentially improve benchmarking and support investor decision-making.Contribution/value-add: The study provides a novel contribution to IC theory by demonstrating how HCD can be used to identify HR practices that leverage the monetary value of HC for business improvement.