Inequality

Publications (by Dionne Pohler)

Publications (by Dionne Pohler)

Does Pay-For-Performance Strain the Employment Relationship? The Effect of Manager Bonus Eligibility on Non-Management Employee Turnover

Employment Relations Inequality Strategic HRM

Are performance incentives a good or a bad thing for employees and organizations? We find evidence that managerial eligibility for bonuses may strain the employment relationship and increase nonmanagemnet employee turnover, unless there are also HR practices that train and incentivize managers to treat employees well.

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Does Pay-For-Performance Strain the Employment Relationship? The Effect of Manager Bonus Eligibility on Non-Management Employee Turnover

We tested the organization-level effects of manager pay-for-performance practices on nonmanagement employee turnover within the context of agency theory and equity theory—two frameworks commonly applied to understand compensation policy and practice. We also propose an alternative theoretical perspective that predicts that managerial pay-for-performance policies may strain the employment relationship and increase nonmanagement employee turnover, unless there are HR practices that train and incentivize managers to treat employees well. We compare these alternative models to establish how well each framework explains the observed effects. Agency theory and equity theory receive limited empirical support in our lagged panel data set of organizations, whereas broader empirical support is established for the strain effect of manager pay-for-performance on the employment relationship. We discuss the implications of our findings for compensation theory, research, and practice.

Are performance incentives a good or a bad thing for employees and organizations? We find evidence that managerial eligibility for bonuses may strain the employment relationship and increase nonmanagemnet employee turnover, unless there are also HR practices that train and incentivize managers to treat employees well.

2017-10-31 17:17:13

Strategic HR System Differentiation between Jobs: The Effects on Firm Performance and Employee Outcomes

Inequality Employment Relations HR Practices Strategic HRM

Does treating employees differently based on the job they perform affect firm performance and employee attitudes? We found that while organizations may benefit from treating employees differently, employees who were recipients of lower HR investments perceived the organization to be less fair and were more likely to leave.

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Strategic HR System Differentiation between Jobs: The Effects on Firm Performance and Employee Outcomes

Schmidt, J., Pohler, D., & Willness, C. (accepted) Strategic HR System Differentiation between Jobs: The Effects on Firm Performance and Employee Outcomes. Human Resource Management.

The purpose of this research was to understand whether firms apply different human resource management systems to different occupations within the same organization (HR differentiation) and how the extent to which they do so may influence firm and employee outcomes. We conducted two studies pertaining to these questions. The first study was based on data collected from managers, and the results suggest that firms differentiate their HR investments based on the strategic value of occupations to the firm, which was further associated with the human capital of those occupations. Differentiation in human capital was also associated with firm performance. The second study was based on data obtained from nonmanagement employees. The findings indicated that employees who were recipients of less HR system investment had lower fairness perceptions, which were further associated with higher turnover intentions and lower organizational citizenship behavior. Although the evidence from these studies suggests that firms may realize benefits from strategic HR system differentiation, managers should carefully consider how to balance the effects of differentiation on firm performance and employee well-being before implementing such systems.

Does treating employees differently based on the job they perform affect firm performance and employee attitudes? We found that while organizations may benefit from treating employees differently, employees who were recipients of lower HR investments perceived the organization to be less fair and were more likely to leave.

2017-01-24 21:56:24

The Merit of a Points-Based Merit System at the Edwards School of Business

Employment Relations Inequality Unions HR Practices Strategic HRM

A case study of the challenges in implementing a points-based merit system at a business school.

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The Merit of a Points-Based Merit System at the Edwards School of Business

A new faculty member is engaged in a decision-making process surrounding the development of a points-based system designed to allocate merit pay at a business school. The process is forcing her to evaluate how she is structuring the allocation of her work, which is directly affecting her motivation toward coaching a student case competition team. Edwards has historically used a judgment-based approach to the allocation of merit. The case outlines the rationale used in the design of the new points-based system, discusses the potential advantages and disadvantages, and highlights the perspectives of different stakeholders throughout the process, including the union, the faculty, and senior administration. The union is opposed to merit, so has outlined fairly stringent criteria for the awarding of merit in the new collective agreement. Faculty opinion is mixed surrounding merit more generally, and the implementation of a points-based system versus a judgment-based system in particular. Senior university administration is committed to the continuation of the merit system at the university as a tool to reward outstanding performance and to retain star faculty. The individual departments at Edwards are in the midst of finalizing the standards and procedures for allocation of merit-based pay. The protagonist is uncertain about how her department will proceed in the design and allocation of points, and how it will result in her re-allocating her work tasks.

A case study of the challenges in implementing a points-based merit system at a business school.

2017-01-24 20:24:50

Employee Inclusivity and Inequality in America: The Promises and Perils of Shared Capitalism

Inequality Governance Employment Relations HR Practices Public Policy Strategic HRM

Do shared capitalism practices that give employees an “ownership” stake in the companies for which they work—through profit sharing, gain sharing, share grants, or stock options—present a viable solution to address inclusivity and income and wealth inequality issues in America? Or is shared capitalism simply "old wine in new bottles"?

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Employee Inclusivity and Inequality in America: The Promises and Perils of Shared Capitalism

Pohler, D. (2015) Employee Inclusivity and Inequality in America. Perspectives on Work, 19: 18-21; 76--77.

There has been increasing interest in the promise of shared capitalism to improve firm performance, increase employee productivity, enhance employee well-being, increase employee voice and participation, and reduce wealth and income inequality. Recent research has found correlations between shared capitalism practices and many of these outcomes, particularly firm performance. However, shared-capitalism practices that increase employee financial ownership of the organizations for which they work do not usually fundamentally alter the governance structure and power dynamics inside the firm that really matter for ensuring employee inclusivity and reducing inequality at the firm level. To do so requires greater employee participation and influence over the decisions that determine the distribution of organizational benefits than is currently the norm in the United States.

Do shared capitalism practices that give employees an “ownership” stake in the companies for which they work—through profit sharing, gain sharing, share grants, or stock options—present a viable solution to address inclusivity and income and wealth inequality issues in America? Or is shared capitalism simply "old wine in new bottles"?

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2017-01-24 02:49:00

Co-operative Innovation Project

Governance Inequality Co-ops Public Policy Development

We need to take the co-operative business model more seriously as an economic and social development tool for rural and Indigenous communities in Western Canada.

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Co-operative Innovation Project

Fulton, M., Pohler., D., Massie, M., Overlander, D., & Wu, H. (2016) Co-operative Innovation Project. Centre for the Study of Co-operatives: University of Saskatchewan.

Pohler, D., & Fulton, M. (Nov 8, 2013) Why we should take the co-operative business model more seriously. Saskatoon StarPhoenix.

Fulton, M., & Pohler, D. (2014) Co-operative Development in Rural and Aboriginal Communities. Saskatchewan Business Magazine, April/May.

We visited communities from British Columbia to Manitoba, spoke with over two thousand people by phone, had over 350 community administrators answer a web-based survey about their community, and had a chance to learn from co-op developers on the ground about the intricacies and challenges of co-operative development in rural and Indigenous communities.

We need to take the co-operative business model more seriously as an economic and social development tool for rural and Indigenous communities in Western Canada.

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2017-01-24 02:46:21
Other Publications

Other Publications

The Relationship Between Community Capitals and Quality of Life in Rural and Aboriginal Western Canadian Communities: Improving Policymaking Using a Place-Conscious Approach

Inequality Governance Development

This study uses secondary survey data collected as part of the Co-operative Innovation Project to examine whether there is a relationship between community capitals and reported quality of life in rural western Canada as well as whether the relationships between quality of life and community capitals may differ across Aboriginal and non-Aboriginal communities in the study region.

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The Relationship Between Community Capitals and Quality of Life in Rural and Aboriginal Western Canadian Communities: Improving Policymaking Using a Place-Conscious Approach

Policymakers around the world now recognize that quality of life is an important indicator of what actually matters to communities. Also referred to as well-being, satisfaction, or happiness, quality of life is a complex, multidimensional construct pertaining to one’s place of residence, physical environment, social characteristics, experiences, and access to services within one’s local environment. Given the close relationship between local conditions and quality of life, using community capitals, or latent measures of the current state of communities’ various resources and capacities, to measure quality of life may provide policymakers with a more useful quality of life measure. This study uses secondary survey data to examine whether there is a relationship between community capitals and reported quality of life in rural western Canada. To explore quality of life as a product of the communities in which community capital stocks are created and experienced, this thesis will also examine whether and how the relationships between quality of life and community capitals may differ across Aboriginal and non-Aboriginal communities in the study region. The results may help policymakers understand how different types of communities conceptualize themselves, as well as how they may pursue place-conscious policies that build upon current community capitals to maintain or improve quality of life in these communities in the future.

This study uses secondary survey data collected as part of the Co-operative Innovation Project to examine whether there is a relationship between community capitals and reported quality of life in rural western Canada as well as whether the relationships between quality of life and community capitals may differ across Aboriginal and non-Aboriginal communities in the study region.

/storage/files/Gouchie.pdf
2017-10-17 02:18:46

Designing a Basic Income Guarantee for Canada

Inequality Governance Income and Wealth Development

Designing a basic income guarantee in Canada: Details on Ontario's Pilot Project and costing plan for a basic income in Canada.

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Designing a Basic Income Guarantee for Canada

Basic Income Guarantee in Canada: Ontario's Pilot Project

Proposed Costing Plan: Boadway, R., Cuff, K., & Koebel, K. (2016) Designing a Basic Income Guarantee for Canada. Queen's Economic Department Working Paper No. 1371.

Abstract for Boadway et al. (2016): We propose a mechanism for implementing a two-stage harmonized Basic Income Guarantee with federal and provincial components. In Stage One, the federal government replaces its refundable and nonrefundable tax credits with an income-tested basic income delivered through the income tax system. The reform is revenue-neutral. In Stage Two, each province decides whether to implement a provincial basic income guarantee that is harmonized with the federal one but allows province-specific basic income levels. The provincial basic income replaces provincial refundable and nonrefundable tax credits as well as welfare and disability transfers, and is also revenue-neutral. All social services and contributory social insurance programs remain intact. An illustrative calculation using Statistical Canada’s SPSD/M model shows the financial feasibility of a national BIG of $20,000 per adult adjusted for family size with a benefit reduction rate of 30%.

Designing a basic income guarantee in Canada: Details on Ontario's Pilot Project and costing plan for a basic income in Canada.

2017-01-26 03:08:00
Blogs

Blog posts (by Dionne Pohler)

No policy of the newly elected provincial government in Ontario has sparked more controversy than the proposed cancellation of the basic income pilot. We propose a way forward.

The basic income pilot in Ontario was unlikely to tell us anything we don't already know. Basic income supporters should change their focus from re-instating the pilot to developing and promoting options for a phased implementation. The most important thing to focus on in the short-term is that participants are treated ethically as the project winds down.

Society needs to take the co-operative business model more seriously as an alternative to conventional investor-owned firms. Find this opinion article here.

Articles

Articles

In this op ed, Kevin Milligan argues that "nothing has contributed more than natural resources to buttressing the Canadian middle class against the rapidly changing global economy of the 21st century."

Resource jobs are sustaining Canada's middle class. Period.

In this op ed, Kevin Milligan argues that "nothing has contributed more than natural resources to buttressing the Canadian middle class against the rapidly changing global economy of the 21st century."

2018-04-17
www.theglobeandmail.com 2018-04-17 20:42:39
Inequality Governance Income and Wealth Development Resource jobs are sustaining Canada's middle class. Period. 2018-04-17 20:42:39
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Organizations often find it challenging to increase diversity and inclusiveness. Does diversity training work or backfire?

Debate: Does diversity training work?

Organizations often find it challenging to increase diversity and inclusiveness. Does diversity training work or backfire?

2018-02-16
www.gendereconomy.org 2018-01-15 20:35:32
Inequality Employment Relations HR Practices Discrimination Debate: Does diversity training work? 2018-01-15 20:35:32
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"This is the fundamental weakness of the minimum wage: you can force business to pay their employees more, but you can’t force them to hire them."

Why a guaranteed minimum income is a better option than raising the minimum wage

"This is the fundamental weakness of the minimum wage: you can force business to pay their employees more, but you can’t force them to hire them."

2018-02-16
nationalpost.com 2018-01-15 20:15:06
Inequality Governance Employment Relations Development Income and Wealth Law Why a guaranteed minimum income is a better option than raising the minimum wage 2018-01-15 20:15:06
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"The election of Justin Trudeau's Liberal government was supposed to signal a new 'nation-to-nation relationship.' But until the country recognizes the right to self-determination and acknowledges the sovereignty of Indigenous nations, argues Alicia Elliott, the future will be the same as the past. Alicia Elliott is a Tuscarora writer from Six Nations, currently living in Brantford, Ontario."

A memo to Canada: Indigenous people are not your incompetent children

"The election of Justin Trudeau's Liberal government was supposed to signal a new 'nation-to-nation relationship.' But until the country recognizes the right to self-determination and acknowledges the sovereignty of Indigenous nations, argues Alicia Elliott, the future will be the same as the past. Alicia Elliott is a Tuscarora writer from Six Nations, currently living in Brantford, Ontario."

2018-02-16
www.theglobeandmail.com 2018-01-15 20:12:38
Inequality Governance Development Discrimination A memo to Canada: Indigenous people are not your incompetent children 2018-01-15 20:12:38
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"For decades, income distribution was ignored by a policy consensus that favoured free markets. Research on income inequality is challenging that view."

A new narrative on income inequality and growth

"For decades, income distribution was ignored by a policy consensus that favoured free markets. Research on income inequality is challenging that view."

2018-02-16
policyoptions.irpp.org 2017-10-31 22:07:10
Inequality Governance Income and Wealth Development A new narrative on income inequality and growth 2017-10-31 22:07:10
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News Items

News Items

Dionne talks to CPAC about the role of co-operatives in economic and social development.

G7 Summit Preview on the Economy

Dionne talks to CPAC about the role of co-operatives in economic and social development.

2018-08-10
www.cpac.ca 2018-08-10 14:03:12
Inequality Governance Development Co-ops Public Policy G7 Summit Preview on the Economy 2018-08-10 14:03:12
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Dionne is interviewed by the Globe and Mail to discuss the effects of British pay transparency laws on Canadian companies.

Britain reveals big gender pay gaps at Canadian firms

Dionne is interviewed by the Globe and Mail to discuss the effects of British pay transparency laws on Canadian companies.

2018-04-09
www.theglobeandmail.com 2018-04-12 01:11:59
Inequality Employment Relations Income and Wealth Discrimination Britain reveals big gender pay gaps at Canadian firms 2018-04-12 01:11:59
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Dionne speaks to CBC's "Ontario Today" to answer questions about Ontario's pay transparency legislation. 

Closing the wage gap: Ontario's pay transparency legislation

Dionne speaks to CBC's "Ontario Today" to answer questions about Ontario's pay transparency legislation. 

2018-04-12
www.cbc.ca 2018-04-12 01:08:58
Inequality Employment Relations Income and Wealth Discrimination Closing the wage gap: Ontario's pay transparency legislation 2018-04-12 01:08:58
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"The experiences of Alberta and Seattle, two jurisdictions that share Ontario's $15-an-hour goal, offer some lessons on how to adjust to a higher minimum wage: that is, if Ontario businesses can weather the short-term storm."

Alberta, Seattle offer lessons for Ontario on 'Fight for $15' minimum wage: Ontario's rate increased to $14 per hour from $11.60 — a 21% jump— on Jan. 1

"The experiences of Alberta and Seattle, two jurisdictions that share Ontario's $15-an-hour goal, offer some lessons on how to adjust to a higher minimum wage: that is, if Ontario businesses can weather the short-term storm."

2018-02-16
www.cbc.ca 2017-11-01 14:04:08
Inequality Governance Employment Relations Income and Wealth HR Practices Law Alberta, Seattle offer lessons for Ontario on 'Fight for $15' minimum wage: Ontario's rate increased to $14 per hour from $11.60 — a 21% jump— on Jan. 1 2017-11-01 14:04:08
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Other Valuable information

Other Valuable Information

On a per capita basis, the annual cost would range between $9,421 and $10,169 for the period 2018-2023.

Summary from the PBO:

The total annual estimated gross cost of the defined GBI would range between $76.0 billion and $79.5 billion for the period 2018-2023. The guaranteed income for disability would range between $3.2 billion and $3.5 billion.

PBO forecasts that more than 7.5 million people would benefit from the basic cost of GBI. Thus, on a per capita basis, the annual cost would range between $9,421 and $10,169 for the period 2018-2023.

The actual federal support for low-income Canadians and vulnerable groups defined by our benchmark model is about $32.9 billion. If this amount were deducted from the total estimated GBI cost of $76.0 billion in 2018-2019, the net cost of a federally implemented GBI would be $43.1 billion. However, the GBI could take the form of a combined federal-provincial basic income system managed by an intergovernmental fiscal arrangement. This would replace some provincial transfers for low-income individuals and families, including many non-refundable and refundable tax credits, thereby reducing its net cost.

Costing a national guaranteed basic income using the Ontario basic income model

Summary from the PBO:

The total annual estimated gross cost of the defined GBI would range between $76.0 billion and $79.5 billion for the period 2018-2023. The guaranteed income for disability would range between $3.2 billion and $3.5 billion.

PBO forecasts that more than 7.5 million people would benefit from the basic cost of GBI. Thus, on a per capita basis, the annual cost would range between $9,421 and $10,169 for the period 2018-2023.

The actual federal support for low-income Canadians and vulnerable groups defined by our benchmark model is about $32.9 billion. If this amount were deducted from the total estimated GBI cost of $76.0 billion in 2018-2019, the net cost of a federally implemented GBI would be $43.1 billion. However, the GBI could take the form of a combined federal-provincial basic income system managed by an intergovernmental fiscal arrangement. This would replace some provincial transfers for low-income individuals and families, including many non-refundable and refundable tax credits, thereby reducing its net cost.

On a per capita basis, the annual cost would range between $9,421 and $10,169 for the period 2018-2023.

2018-08-10
www.pbo-dpb.gc.ca 2018-04-18 18:54:06

Summary from the PBO:

The total annual estimated gross cost of the defined GBI would range between $76.0 billion and $79.5 billion for the period 2018-2023. The guaranteed income for disability would range between $3.2 billion and $3.5 billion.

PBO forecasts that more than 7.5 million people would benefit from the basic cost of GBI. Thus, on a per capita basis, the annual cost would range between $9,421 and $10,169 for the period 2018-2023.

The actual federal support for low-income Canadians and vulnerable groups defined by our benchmark model is about $32.9 billion. If this amount were deducted from the total estimated GBI cost of $76.0 billion in 2018-2019, the net cost of a federally implemented GBI would be $43.1 billion. However, the GBI could take the form of a combined federal-provincial basic income system managed by an intergovernmental fiscal arrangement. This would replace some provincial transfers for low-income individuals and families, including many non-refundable and refundable tax credits, thereby reducing its net cost.

Inequality Governance Income and Wealth Development Costing a national guaranteed basic income using the Ontario basic income model 2018-04-18 18:54:06
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Thomas Piketty describes his extensive research about one of the major causes of inequality.

Capital and wealth in the 21st century

Thomas Piketty describes his extensive research about one of the major causes of inequality.

2018-04-11
www.ted.com 2018-04-12 00:46:54
Inequality Income and Wealth Capital and wealth in the 21st century 2018-04-12 00:46:54
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