Empirical Research into the Implementation of Rewards Systems in Companies Located in the Czech Republic

Abstract

In this paper we pick up the threads of our previous research on rewards systems and present updated results accordingly. Our new empirical research was conducted among for-profit organizations domiciled in the Czech Republic and with more than 250 full-time employees. We focused our attention on the degree to which the principles of the total rewards approach are utilized, on the procedures employed for job evaluation, and on the implementation of rewards for performance. Results are compared to our previous research, as well as to the results of similar survey conducted among U.S. private companies. Our research showed that companies in the Czech Republic make intensive use of the principles of the total rewards approach and also make intensive use of rewards for performance (short-term variable rewards for performance were implemented by 81 percent of our respondents and long-term variable rewards for performance were implemented by 48 percent of our respondents). For job evaluation, analytical and market methods are used equally. Last but not least, we test the correlation of the index which we constructed for the evaluation of the implementation of the total rewards approach with the subjective evaluation of these rewards systems.