CEOs' human concern translates into higher stock price, says study phys.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from phys.org Daily Mail and Mail on Sunday newspapers.
To attract new talent, employers often offer new hires higher wages than existing employees. But today, a combination of regulatory changes and technological advances have dramatically increased pay transparency in many sectors, making employees increasingly aware of these pay disparities. How do existing employees (and especially top performers) react to these higher-paid new hires? And how can organizations mitigate the associated risks? The authors’ recent research shows that unless employers adjust existing employees’ wages soon after making a new hire, employees tend to resign and that top performers tend to resign faster than others. As such, employers should be aware of the impact hiring higher-paid external talent can have on their teams, conduct regular pay equity analyses to ensure that any disparities are fully explainable, and develop the agility necessary to adjust wages as soon as any inequities are identified.
The IBS faculty provide progressive management knowledge and skills related to global strategic management while breaking new research ground in areas such as global leadership and emerging market strategies.
Supply Chain & Information Management Academic Group - D'Amore-McKim School of Business northeastern.edu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from northeastern.edu Daily Mail and Mail on Sunday newspapers.