The management of variable pay in European banking

Arrowsmith, James; Nicholaisen, Heidi; Bechter, Barbara; Nonell, Rosa

doi:10.1080/09585192.2010.528654

Cited by 20 publications

(11 citation statements)

References 24 publications

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“…Concerning the need for a more differentiated analysis of different types of employee representatives on the incidence of VPS, evidence in the literature indicates that the industrial relations framework clearly matters. For example, Arrowsmith et al (2010) showed that in some countries (e.g., Austria), works councils were (legally) equipped with the right to negotiate the implementation of VPS if supported by a higher-level collective agreement, whereas in other countries (e.g., Spain), this right was not only opaque but also dependent on wider trade union support. Furthermore, as shown by Nergaard et al (2009), the role of different types of employee representatives with respect to the implementation of VPS also depends on how governed the interaction between the company and higher level of collective bargaining is, as well as whether VPS is already an integral part of a higher-level collective agreement.…”

Section: Modeling Strategy and Resultsmentioning

confidence: 99%

“…Furthermore, VPS is a method of pay determination that enables employee representatives to participate in the distribution of a company’s profits in a flexible way in addition to other methods, for example, base pay that is determined in collective bargaining. This (additional) form of flexible pay determination is especially favorable for employees and their representatives if the company performs well and profits can be distributed instantly, as well as if the process of pay determination is transparent with respect to the company’s goals and how individual employees must act and behave in order to receive (additional) pay (Arrowsmith, Nicholaisen, Bechter, and Nonell 2010). Furthermore, if pay is distributed in a sustainable way and is not unconsolidated as for many profit-sharing schemes and therefore is continuously dependent upon the discretion of the employer side, there is little or no reason to expect the employee side to object (Kessler and Purcell 2003).…”

Section: Relationship Between Variable Pay and Collective Wage Bargaimentioning

confidence: 99%

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Variable Pay Systems and/or Collective Wage Bargaining? Complements or Substitutes?

Bechter¹,

Braakmann²,

Brandl

2019

ILR Review

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The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details.Abstract: There is uncertainty as to whether collective wage bargaining impedes the implementation of variable pay systems or not. We argue that much of this uncertainty is due to neglect of differences in the institutional structure of bargaining. Using representative company level data for all member states of the European Union, we investigate the incidence of variable pay systems in general as well as different types including payment-by-results, performance-related pay, and team-related pay under different bargaining arrangements. We find that the institutional structure of collective bargaining matters: variable pay systems thrive under company and multi-level collective bargaining, while their implementation is hindered under national-level collective wage bargaining.Freeman, Richard B. 1982. Union wage practices and wage dispersion within establishments.

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Section: Modeling Strategy and Resultsmentioning

confidence: 99%

Section: Relationship Between Variable Pay and Collective Wage Bargaimentioning

confidence: 99%

Variable Pay Systems and/or Collective Wage Bargaining? Complements or Substitutes?

Bechter¹,

Braakmann²,

Brandl

2019

ILR Review

Self Cite

View full text Add to dashboard Cite

show abstract

“…Arrowsmith et al. ; Kirsch and Wailes ). While the impact of GFC on the Chinese banking industry has been minimal, the industry has been through major reform since 2006 and has become far more commercialised and competitive than it used to be, despite the fact that the industry remains largely state‐owned (see Zhao et al.…”

Section: Literature Reviewmentioning

confidence: 99%

How resilient is the (future) workforce inChina? A study of the banking sector and implications for human resource development

Wang

Cooke

Huang

2013

Asia Pac J Human Res

104

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Having a resilient workforce is crucial to enhancing organisational competitiveness in an era of intensifying global competition. However, few organisations see resilience as part of the soft skills and attitudes that can be developed strategically. This study examines nine dimensions of resilience of over 1500 banking employees and 310 university students being trained for the industry. The study shows that gender, age and education level affect the level of resilience. It also reveals that performance pressure does not seem to have detrimental effect on the bank employees' resilience. The study points to a number of research and management implications and highlights the need to provide tailored training and development to increase the resilience level of employees. It also provides indications of the types of skills that universities should help their students develop in order to better prepare them for their future employment. Key points1 A resilient workforce is crucial to enhancing organisational competitiveness in an era of intensifying global competition. 2 There is an increasing overlap between the key attributes in resilience and soft skills. 3 Gender, age and education level may affect employees' resilience level, with implications for training and development.

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“…As another study shows, there is a tendency to convergence on special kinds of VPS across countries (Arrowsmith et al, 2007).…”

Section: Notesmentioning

confidence: 95%

Variable Pay and Collective Bargaining: A Cross-National Comparison of the Banking Sector

Traxler

Arrowsmith

Nergaard

et al. 2008

Economic and Industrial Democracy

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This article analyses the challenge of variable pay to collective bargaining, based on a cross-national comparison that takes banking organizations in Austria, Norway, Spain and the UK as representatives of Europe's principal bargaining systems. The hypothesis is that the capacity of collective bargaining to govern variable pay varies with the bargaining system. As the findings show, articulated multi-employer bargaining is more able to govern variable pay than its unarticulated counterpart and single-employer bargaining. Within the case of articulated multi-employer bargaining, single-channel systems of employee workplace representation are superior to dual systems, all the more since the former equip the unions with selective incentives for membership.

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The management of variable pay in European banking

Cited by 20 publications

References 24 publications

Variable Pay Systems and/or Collective Wage Bargaining? Complements or Substitutes?

Variable Pay Systems and/or Collective Wage Bargaining? Complements or Substitutes?

How resilient is the (future) workforce inChina? A study of the banking sector and implications for human resource development

Variable Pay and Collective Bargaining: A Cross-National Comparison of the Banking Sector

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