The effectiveness of organization-wide compensation strategies in technology intensive firms

This study examines compensation strategies formulated and implemented by high technology firms and their relative effectiveness. Based on a sample of 173 firms, empirical results indicate that the following pay strategies are most appropriate for high technology organizations: A greater emphasis on the individual rather than the job as the unit of analysis, sharing of risks between employees and the firm, an external market orientation, dispersed decision making authority for pay allocation purposes, reliance on aggregate incentives and a longer time orientation