Return on Reward

摘要: Return on reward, i.e. the average economic performance per employee, which a company generates based on its total labor expenses is topic that seems to have received surprisingly little attention in past. While companies manage their (often fictive) financial indicators (e.g. capital structures and stock prices) an attempt create value for shareholders, sense each individual employee (or at least, should) actually be contributing certain measurable value, often overlooked. Moreover, world of Human Resource Management, intense debate between economists psychologists/sociological economists whether higher incentives actually lead performance, still largely unsettled. By using model measures as function of productivity cost per employee, while same time looking trends indicate relation these two, this paper answers question wage bills generate productivity. The relationship between the various metrics over an 18-year timespan was empirically examined. The results from assessment indicated positive correlation can found total labor productivity, measured by different metrics. Thus, current literature locked effects motivation performance, these provide strong argument fact positively impact performance. Moreover, subsequent findings it concluded providing leads a productivity increase outweighs initial increase. This conclusion the economic returns benefit rewards provided organization’s workforce. Hence, study conclude does indeed pay off more.