Pay inequity effects on back-office employees’ job performances: the case of a large insurance firm

Yingchao Zhang (), Oliver Fabel and Christian Thomann

Central European Journal of Operations Research, 2015, vol. 23, issue 2, 439 pages

Abstract: Using personnel data on back-office employees of an insurance company, we investigate the effect of pay inequity—as measurable and, hence, perceivable by an individual—on the particular individual’s job performance. We calculate three measures of pay inequity, “inequality,” “envy,” and “altruism,” for total pay as well as, separately, for three pay components, salary, commissions, and year-end bonuses. Job performance is measured by the value of commissions for new contracts that accrue to the sales agents who are serviced by the back-office employee. Quantile panel regressions show that inequity effects on performance distinctly differ over the performance distribution and across the different pay components. Further, results depend on the time structure of pay and, possibly also, on pay secrecy rules. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: Pay inequity; Individual performance; Pay components; M52; J33 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10100-015-0381-z

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