Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 51, No. 1, pp.199-226
ISSN: 1226-1874 (Print)
Print publication date 28 Feb 2022
Received 07 Jun 2021 Revised 11 Oct 2021 Accepted 28 Oct 2021
DOI: https://doi.org/10.17287/kmr.2022.51.1.199

임금의 연공성이 조직성과에 미치는 영향에 관한 연구

Heejoon Park ; Heekyung Kim ; Hyemin Han
(First Author/Corresponding Author) College of Business Administration, Seoul National University hjpark@snu.ac.kr
(Co-Author) College of Business Administration, Seoul National University allie79@snu.ac.kr
(Co-Author) College of Business Administration, Seoul National University hmakahlo@snu.ac.kr
The Effect of Seniority-based Pay on Firm Performance


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Wages are an important factor that affects firm performance by influencing both the composition of the workforce and the behaviors of the employees. This study investigates how seniority-based pay affects firm performance. Using the Human Capital Corporate Panel (HCCP), we found that sales per employee, but not return on assets, was positively associated with the extent to which wages were increased by tenure. Limited support was found for the moderating effect of technological changes. These results demonstrate the importance of pay structures with regard to firm performance.

Keywords:

Seniority-based Pay, Firm Performance, Technological Changes, AMO Theory

Acknowledgments

This study was supported by the Institute of Management Research at Seoul National University.

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∙ The author Heejoon Park is a professor in the College of Business Administration at Seoul National University. He earned a doctoral degree in Industrial Relations from the University of Wisconsin-Madison. His research interests include Industrial Relations, Labor Unions and Collective Bargaining, and Compensation Management.

∙ The author Heekyung Kim is earned Master's degree and completed Ph. D. program in business administration at Seoul National University. Before joining a doctoral program, she worked at HR Planning department at CJ group. She also worked as a senior researcher at Korea Labor Institute and Korea Labor Foundation. Her research interests are Work Life Balance, Corporate Social Responsibility, Industrial Relations, and Compensation Management.

∙ The author Hyemin Han is earned Bachelor's degrees at Ewha Women's University. She earned Master's degree and completed Ph. D. program in business administration at Seoul National University. Her research interests are Irregular workers, Industrial Relations, Strategic Human Resource Management, and Compensation Management.