Are Workers Rewarded for Inconsistent Performance?

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See all articles by Anil Özdemir

Anil Özdemir

University of Zurich - Department of Business Administration

Helmut M. Dietl

University of Zurich - Department of Business Administration (IBW)

Giambattista Rossi

University of London

Rob Simmons

Lancaster University

Date Written: March 2020

Abstract

This paper examines whether workers are rewarded for inconsistent performances by salary premia. Some earlier research suggests that performance inconsistency leads to salary premia while other research finds premia for consistent performances. Using detailed salary and performance data, we find that inconsistency is rewarded for some dimensions of performance, specifically those where creativity is important and outcomes have higher variance. We find salary penalties for inconsistent performances in those dimensions that are basic requirements of successful team production.

Keywords: salaries, performance, consistency

JEL Classification: J31, M52, Z20

Suggested Citation

Özdemir, Anil and Dietl, Helmut M. and Rossi, Giambattista and Simmons, Robert, Are Workers Rewarded for Inconsistent Performance? (March 2020). Available at SSRN: https://ssrn.com/abstract=

Anil Özdemir (Contact Author)

University of Zurich - Department of Business Administration ( email )

Plattenstrasse 14
Zurich, CH-8032
Switzerland

Helmut M. Dietl

University of Zurich - Department of Business Administration (IBW) ( email )

Hottingerstrasse 10
Plattenstrasse 14
Zurich, 8032
Switzerland

Giambattista Rossi

University of London

Robert Simmons

Lancaster University ( email )

Lancaster LA1 4YX
United Kingdom

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