Do Nonprofits Treat Their Employees Differently? Incentive Pay and Health Benefits

Xinxiang Chen, Ting Ren, David H Knoke

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

We examine how nonprofit, public, and for-profit establishments vary in the provision of health benefits and insurance and performance-based incentives using the 2002 National Organization Survey of establishments in the United States. We found that in comparison to for-profit firms, both nonprofit and public organizations are less likely to use performance-based incentives, although they provide their employees with better health benefits and insurance. Sectoral differences in the provision of health benefits and insurance and use of performance-based incentives persist after controlling for correlates of sector that predict these outcomes, including establishment size, independence of establishment, market competition, establishment age, and unionization. We also found trade-offs between the provision of health benefits and insurance and use of performance-based incentives. Our results are generally consistent with the prediction from agency theory and also consistent with a view that public and nonprofit organizations are more concerned with the well-being of their employees.

Original languageEnglish (US)
Pages (from-to)285-306
Number of pages22
JournalNonprofit Management and Leadership
Volume24
Issue number3
DOIs
StatePublished - Mar 1 2014

Fingerprint

Health benefits
Health insurance
Incentive pay
Employees
Incentives
Public organizations
Nonprofit organization
Well-being
Trade-offs
Correlates
Market competition
Agency theory
Prediction
Unionization
Establishment size

Keywords

  • Agency theory
  • Health benefits
  • Intrinsic motivation
  • Ownership
  • Performance-based incentives

Cite this

Do Nonprofits Treat Their Employees Differently? Incentive Pay and Health Benefits. / Chen, Xinxiang; Ren, Ting; Knoke, David H.

In: Nonprofit Management and Leadership, Vol. 24, No. 3, 01.03.2014, p. 285-306.

Research output: Contribution to journalArticle

@article{1d9b2f9ba37543518157aabbda8244af,
title = "Do Nonprofits Treat Their Employees Differently? Incentive Pay and Health Benefits",
abstract = "We examine how nonprofit, public, and for-profit establishments vary in the provision of health benefits and insurance and performance-based incentives using the 2002 National Organization Survey of establishments in the United States. We found that in comparison to for-profit firms, both nonprofit and public organizations are less likely to use performance-based incentives, although they provide their employees with better health benefits and insurance. Sectoral differences in the provision of health benefits and insurance and use of performance-based incentives persist after controlling for correlates of sector that predict these outcomes, including establishment size, independence of establishment, market competition, establishment age, and unionization. We also found trade-offs between the provision of health benefits and insurance and use of performance-based incentives. Our results are generally consistent with the prediction from agency theory and also consistent with a view that public and nonprofit organizations are more concerned with the well-being of their employees.",
keywords = "Agency theory, Health benefits, Intrinsic motivation, Ownership, Performance-based incentives",
author = "Xinxiang Chen and Ting Ren and Knoke, {David H}",
year = "2014",
month = "3",
day = "1",
doi = "10.1002/nml.21093",
language = "English (US)",
volume = "24",
pages = "285--306",
journal = "Nonprofit Management and Leadership",
issn = "1048-6682",
publisher = "Jossey-Bass Inc.",
number = "3",

}

TY - JOUR

T1 - Do Nonprofits Treat Their Employees Differently? Incentive Pay and Health Benefits

AU - Chen, Xinxiang

AU - Ren, Ting

AU - Knoke, David H

PY - 2014/3/1

Y1 - 2014/3/1

N2 - We examine how nonprofit, public, and for-profit establishments vary in the provision of health benefits and insurance and performance-based incentives using the 2002 National Organization Survey of establishments in the United States. We found that in comparison to for-profit firms, both nonprofit and public organizations are less likely to use performance-based incentives, although they provide their employees with better health benefits and insurance. Sectoral differences in the provision of health benefits and insurance and use of performance-based incentives persist after controlling for correlates of sector that predict these outcomes, including establishment size, independence of establishment, market competition, establishment age, and unionization. We also found trade-offs between the provision of health benefits and insurance and use of performance-based incentives. Our results are generally consistent with the prediction from agency theory and also consistent with a view that public and nonprofit organizations are more concerned with the well-being of their employees.

AB - We examine how nonprofit, public, and for-profit establishments vary in the provision of health benefits and insurance and performance-based incentives using the 2002 National Organization Survey of establishments in the United States. We found that in comparison to for-profit firms, both nonprofit and public organizations are less likely to use performance-based incentives, although they provide their employees with better health benefits and insurance. Sectoral differences in the provision of health benefits and insurance and use of performance-based incentives persist after controlling for correlates of sector that predict these outcomes, including establishment size, independence of establishment, market competition, establishment age, and unionization. We also found trade-offs between the provision of health benefits and insurance and use of performance-based incentives. Our results are generally consistent with the prediction from agency theory and also consistent with a view that public and nonprofit organizations are more concerned with the well-being of their employees.

KW - Agency theory

KW - Health benefits

KW - Intrinsic motivation

KW - Ownership

KW - Performance-based incentives

UR - http://www.scopus.com/inward/record.url?scp=84896734677&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84896734677&partnerID=8YFLogxK

U2 - 10.1002/nml.21093

DO - 10.1002/nml.21093

M3 - Article

VL - 24

SP - 285

EP - 306

JO - Nonprofit Management and Leadership

JF - Nonprofit Management and Leadership

SN - 1048-6682

IS - 3

ER -