Knowledge that Transforms

Discrimination in the labor market has historically been associated with gender, race, ethnicity, and age. This article introduces another basis of discrimination—international experience—which may exist in developing countries because of a colonial mindset. The research is an exploratory study, based on an analysis of in‐depth semistructured interviews with 8 HR managers, 19 employees with international experience, and 24 employees without international experience ( N = 51) working in the oil and gas and telecom sectors of Pakistan. Results indicate some initial evidence of a bias, and hence discrimination during recruitment for entry‐level positions. Findings also indicate that international experience may contribute to enhanced employment opportunities, career progress, and higher compensation at senior‐level leadership positions, leaving those without such experience at a disadvantage. While in some cases international experience may be a genuine occupational requirement ( GOR ), further research is needed to identify whether this is in fact a GOR for senior level positions in all types of organizations or indirect discrimination under the guise of GOR . Recommendations for HR managers and organizational leaders are also set out, which can be applied in practice to foster equality of opportunity in the workplace.

Work identity is important in the attraction and retention of staff, yet how the facets of such identity relate remains convoluted and unclear despite this being of interest to both scholars and practitioners. We use structural equation modeling to analyze empirical data from 144 employees in the United Kingdom's oil and gas industry, analyzing the nature and interrelationship of identification as individual‐level (career advancement) and social‐level (work group and organization) foci, as well as considering the two psychological self‐presentation factors (value expression and social adjustment) that direct and drive identification processes. A dichotomy between individual and social components of work identity is found, revealing a strong association between both social‐level foci of identification. Moreover, both components of work identity are found to be premised on different psychological factors, furthering our knowledge of the enmeshed nature of identity at work.

Against the backdrop of only a few empirical studies on the topic of up‐or‐out career models in professional service firms (PSFs), we highlight the importance of an explicit applicant perspective on the topic of up‐or‐out and develop a quantitative approach to analyze the perception and effects of up‐or‐out models in practice. Our empirical study is based on an online practitioner survey as well as on a two‐by‐two between‐subjects‐experiment with law and management students. The practitioner sample shows that the interviewed classic PSFs (law firms and accounting firms) have predominantly implemented alternative career positions in favor of up‐or‐out models while the interviewed Neo‐PSFs (management consulting firms) show a more balanced implementation of up‐or‐out models and extended career models. However, results of our experimental applicant study reveal that the potential employee groups have different preferences: Law students (and hence potential applicants of classic PSFs in the future) show a higher likelihood to apply in connection with the up‐or‐out‐model, whereas management students (and hence potential applicants of Neo‐PSFs in the future) show a higher likelihood to apply in connection with the alternative career model.

This article develops theory about an agency problem affecting the strategic human capital (SHC) of the firm. It proposes three categories of SHC‐related choices managers must make that imply a trade‐off between near‐ and long‐term performance. Dispersed shareholding, firm coverage by securities analysts, and their practice of publishing quarterly earnings forecasts are argued to entail a bias in management incentives, shifting the balance in this trade‐off toward near‐term performance. To restore the balance, securities analysts would need to distinguish transitory from recurring effects of SHC‐related choices in their valuation models (e.g., treating certain labor cost savings during cyclical downturns as transitory). Restoring the balance would also require them to anticipate long‐term effects in their long‐term earnings forecasts (e.g., long‐term positive effects of retaining employees with valuable skills during cyclical downturns). The article discusses specific transitory cost effects and long‐term effects they could potentially take into account. The skills and incentives needed by analysts to account for such effects are argued to vary across firm segments.

This article reveals an unexplored paradox for HR managers: the centrality of an employee in the social network benefits performance but hampers performance appraisal because it affects supervisors' rating errors. Central employees can be erroneously rated high on performance even when they are not high performers because supervisors tend to overappraise their performance. A distinction is made between rating precision, which depends on supervisors' uncertainty regarding employees' performance, and rating accuracy, which depends on supervisors' bias in favor of employees. Employee centrality is posited to be beneficial to precision but deleterious to accuracy because it regulates the diffusion of positive information, status, and power, all of which distort supervisors' capacity and motivation to accurately appraise performance. It is then argued that rating errors caused by network centrality affect aggregate perceptions of justice in organizations. When employees are highly connected to each other in a dense network, organizations have a strong and positive justice climate. Yet when some employees are more central than others in a centralized network, organizations have a negative and weak justice climate. The article contributes to the literature because it identifies an unexplored dark side of network centrality and offers recommendations for HR managers to cope with its deleterious consequences and for scholars to study them.

Noncompete agreements (also known as covenants not to compete [CNCs]) are frequently used by many businesses in an attempt to maintain their competitive advantage by safeguarding their human capital and the associated business secrets. Although the choice of whether to include CNCs in employment contracts is made by firms, the real extent of their restrictiveness is determined by the state laws. In this article, we explore the effect of state‐level CNC enforceability on firm productivity. We assert that an increase in state level CNC enforceability is detrimental to firm productivity, and this relationship becomes stronger as comparable job opportunities become more concentrated in a firm's home state. On the other hand, this negative relationship is weakened as employee compensation tends to become more long‐term oriented. Results based on hierarchical linear modeling analysis of 21,134 firm‐year observations for 3,027 unique firms supported all three hypotheses.

This study investigates the relationship between sickness absence and shift work. It is hypothesized that the effect of shift work is linked to sickness absence by two mediators: perceived health and work‐family conflict (WFC). Shift work was hypothesized to have an adverse effect on health, as well as making work‐family balance harder to obtain, both in turn resulting in higher sickness absence. The study distinguishes between self‐declared (short‐term) and doctor declared (long‐term) sickness absence. A survey was conducted covering all employees in a Norwegian hospital working more than 30 % of a full position (N=5272) in January 2012, yielding 1864 valid responses (% response = 36). Survey data was coupled with register data on days of sickness absence in 2014. A model with perceived health and WFC as mediating variables between shift work and sickness absence was tested. The findings indicate no direct effect of shift work on sickness absence, but indirect effects both through WFC and perceived health.

Organizations often pay greater salaries to higher‐ranking executives compared to lower‐ranking executives. While this method can be useful for retaining those at the organization's apex, it may also incline executives at the bottom of the pay pyramid to see themselves at a disadvantage and thus exit the firm. Naturally, organizations often want to retain some of their lower‐paid, but highly valuable executives; the question, then, is how organizations can reduce the turnover of lower‐ranking executives. By integrating social with temporal comparison theory, we argue that, when executives earn relatively less than their peers, more pay growth (i.e., individual pay increases over time) leads to less turnover. The results of our analysis, which covered almost 20 years of objective data on a large sample of U.S. top executives, provide support for our theory.

Work–family conflict (WFC) research has focused almost exclusively on nonimmigrant populations. To expand the understanding of WFC among immigrants, this longitudinal study (six‐month time lag) aimed to investigate the mechanisms linking acculturation, strain‐based WFC, and subjective well‐being. In order to do this, two theory‐based mediation models were developed and tested on a sample of 264 Chinese immigrants working in New Zealand using structural equation modeling. Results show that subjective well‐being mediated the effect of acculturation on strain‐based WFC, and acculturation did not directly influence strain‐based WFC. Furthermore, evidence was found for reciprocal relationships between strain‐based WFC and subjective well‐being, as well as for the same‐domain perspective. Strain‐based work interfering with family and strain‐based family interfering with work (two directions of strain‐based WFC) have significant effects on work‐related and family‐related well‐being, respectively, and vice versa. Overall, the present study provides an appropriate platform for future work–family research on immigrant populations and offers practical prescriptions for human resource managers to operate successfully within a diverse workplace.

While prior research demonstrates the strategic human resource (HR) advantages associated with offering work–family benefits (WFBs), firms continue to be reluctant in providing their employees with these benefits. Drawing on the corporate governance and stakeholder orientation literatures, this study examines the role of board independence and capital for WFBs being offered in publicly‐traded firms. Our results demonstrate that various director independence and capital attributes are related to the firm offering WFBs. Specifically, board directors who are outsiders, women, and holders of additional directorships, with their broad stakeholder orientation, increase the likelihood of WFBs being offered by the firm [Correction added on December 14, 2017, after first online publication: the preceding sentence has been updated to clarify the findings of the study.]. These findings are of importance to HR practitioners considering the influence that corporate boards can have on the firm's use of HR practices, such as WFBs, that affect all employees, not just the executives.