Compensation Objectives and Business Unit Pay Strategy

  title={Compensation Objectives and Business Unit Pay Strategy},
  author={Joseph J. Gerakos and Christopher Ittner and Frank Moers},
This study investigates the effects of attraction, retention, and incentive objectives on business unit pay strategy. Economic and psychological theories argue that differences in compensation objectives should lead to variations in organizations’ pay strategies, including decisions regarding the level of pay relative to its labor market and the emphasis on different compensation elements. However, compensation theories provide conflicting implications regarding the use of various pay practices… CONTINUE READING


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