How High Performance Human Resource Practices and Workforce Unionization Affect Managerial Pay
Colvin, Alexander; Batt, Rosemary; Katz, Harry C.
Using data from a nationally representative sample of telecommunications establishments, this study finds that HR practices and workforce unionization influence managerial pay levels and the ratio of manager-to-worker pay. High performance HR practices, including investment in the skills of the workforce, in computer-based technologies, and in performance-based worker pay practices, are all positively related to managerial pay; but the use of workforce teams, which shift some managerial responsibilities to workers, has the opposite association. High performance HR practices also are associated with lower manager to- worker pay differentials. In addition, workforce unionization is positively associated with managerial pay levels, with worker base pay mediating the relationship between managers' pay and unionization.
job; research; practice; firm; performance; HR; business; workforce; skill; worker; pay; manager