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 language | English (US) |
---|---|
Pages (from-to) | 285-306 |
Number of pages | 22 |
Journal | Nonprofit Management and Leadership |
Volume | 24 |
Issue number | 3 |
DOIs | |
State | Published - Mar 2014 |
Keywords
- Agency theory
- Health benefits
- Intrinsic motivation
- Ownership
- Performance-based incentives