Employee Compensation, Training and Financial Performance during the COVID-19 Pandemic

Rabie Mahssouni, Mohamed Noureddine Touijer () and Mohamed Makhroute
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Rabie Mahssouni: Laboratory of Researches in Finance, Accounting, Management and Systems Decision Support Information at The National School of Business and Management, Hassan I er University, Settat 26000, Morocco
Mohamed Noureddine Touijer: Laboratory of Interdisciplinary Studies of Research and Study in Management and Business Law (LIRE-MD), Faculty of Law, Economics and Social Sciences (FSJES), Cadi Ayyad University, Marrakech 40000, Morocco
Mohamed Makhroute: Laboratory of Researches in Finance, Accounting, Management and Systems Decision Support Information at The National School of Business and Management, Hassan I er University, Settat 26000, Morocco

JRFM, 2022, vol. 15, issue 12, 1-19

Abstract: The purpose of this paper is multi-faceted: first, to analyze the impact of employee compensation and training on firms’ financial performance and the moderating effect of the COVID-19 pandemic on the relationship between employee compensation and financial performance, as well as the relationship between training and financial performance; and second, to analyze the decision-making process pertaining to these two aspects of human resources both prior to and during the COVID-19 pandemic. This study utilizes a sample of 103 Belgian pharmaceutical firms whose financial statements were published in the Bureau Van Djik database between 2012 and 2021. The estimation approach employed was panel data analysis, and the Generalized Method of Moments was used to evaluate the robustness of the system. Whether or not a crisis exists greatly alters the parameters that influence a pharmaceutical company’s business performance. Specifically, the results reveal that the COVID-19 pandemic had a substantial and negative impact on financial performance. Human resource factors, which include employee compensation and training, more accurately explain the company’s performance. The key contribution of such an approach is to illustrate that human resource-related factors have an impact on performance indicators during various types of crises, thereby assisting HR managers in making the best decision during times of crisis. It provides basic guidelines for policymakers to adhere to in order to have a better knowledge of how human capital characteristics might be utilized to improve the performance of their businesses during times of crisis. In addition, this research demonstrates that the firm’s unique characteristics may affect the success of Belgian businesses.

Keywords: human resources; performance; pharmaceutical industry; Belgium; panel data (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
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