Pay Dispersion and Performance in Teams

Alessandro Bucciol; Nicolai J. Foss; Marco Piovesan

doi:10.1371/journal.pone.0112631

Pay Dispersion and Performance in Teams

Alessandro Bucciol, Nicolai J. Foss, Marco Piovesan

Abstract

Extant research offers conflicting predictions about the effect of pay dispersion on team performance. We collected a unique dataset from the Italian soccer league to study the effect of intra-firm pay dispersion on team performance, under different definitions of what constitutes a ''team''. This peculiarity of our dataset can explain the conflicting evidence. Indeed, we also find positive, null, and negative effects of pay dispersion on team performance, using the same data but different definitions of team. Our results show that when the team is considered to consist of only the members who directly contribute to the outcome, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of the team causes this effect to disappear or even change direction. Finally, we find that the detrimental effect of pay dispersion is due to worse individual performance, rather than a reduction of team cooperation.

Originalsprog	Engelsk
Tidsskrift	PLoS ONE, Edited by Peter G. Roma
Vol/bind	9
Udgave nummer	11
DOI	https://doi.org/10.1371/journal.pone.0112631
Status	Udgivet - 14 nov. 2014

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10.1371/journal.pone.0112631

journal.pone.0112631&type=printableForlagets udgivne version, 983 KBLicens: CC BY

http://adsabs.harvard.edu/abs/2014PLoSO...9k2631B

Citationsformater

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AU - Piovesan, Marco

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N2 - Extant research offers conflicting predictions about the effect of pay dispersion on team performance. We collected a unique dataset from the Italian soccer league to study the effect of intra-firm pay dispersion on team performance, under different definitions of what constitutes a ''team''. This peculiarity of our dataset can explain the conflicting evidence. Indeed, we also find positive, null, and negative effects of pay dispersion on team performance, using the same data but different definitions of team. Our results show that when the team is considered to consist of only the members who directly contribute to the outcome, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of the team causes this effect to disappear or even change direction. Finally, we find that the detrimental effect of pay dispersion is due to worse individual performance, rather than a reduction of team cooperation.

AB - Extant research offers conflicting predictions about the effect of pay dispersion on team performance. We collected a unique dataset from the Italian soccer league to study the effect of intra-firm pay dispersion on team performance, under different definitions of what constitutes a ''team''. This peculiarity of our dataset can explain the conflicting evidence. Indeed, we also find positive, null, and negative effects of pay dispersion on team performance, using the same data but different definitions of team. Our results show that when the team is considered to consist of only the members who directly contribute to the outcome, high pay dispersion has a detrimental impact on team performance. Enlarging the definition of the team causes this effect to disappear or even change direction. Finally, we find that the detrimental effect of pay dispersion is due to worse individual performance, rather than a reduction of team cooperation.

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Pay Dispersion and Performance in Teams

Abstract

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