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Figure A4: Number of Production Employee Turnovers by Month

Figure A4: Number of Production Employee Turnovers by Month

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This paper investigates the impact of a corporate wellness program on worker productivity using a panel of objective health and productivity data from 111 workers in five laundry plants. Although almost 90% of companies use wellness programs, existing research has focused on cost savings from insurance and absenteeism. We find productivity improvem...

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... In laundry plants, wellness and post-program health participation make significant effect on work productivity. POS in well-being of the employees has positive effect about 10% on work productivity (Gubler et al., 2018). The empirical study on 88 teams from 13 health care organizations in the United Kingdom proved that POS influenced collective and personal work productivity (Lyubovnikova et al., 2018). ...
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For controlling the negative impact of Covid-19 outbreak, Indonesian government instructs the citizens to work from home. Unfortunately, the productivity of work from home has been questioned. This article is an attempt to elaborate work productivity and the effect of digital skill, digital collaboration, and perceived organizational support (POS) as the drivers. For supporting the arguments, this article has conducted a quantitative study which involved 824 working citizens as the respondents from all over Indonesia. The respondents are mostly the first timers in doing work from home, either in governmental institution or private organizations. The gathered data were structured by PLS SEM and analyzed by SmartPLS application version 3. The result reveals that digital skills play serve as a mediator in the linkage between work productivity and digital collaboration. Digital skills and POS affect directly on work productivity, but digital collaboration impacts indirectly. ABSTRAK Dalam rangka mengendalikan dampak negatif dari wabah Covid-19, pemerintah Indonesia menginstruksikan warganya untuk bekerja dari rumah. Sayangnya, produktivitas bekerja dari rumah masih disangsikan. Artikel ini berupaya untuk membahas produktivitas kerja dan pengaruh dari keterampilan digital, kolaborasi digital, dan perceived organizational support (POS) sebagai faktor-faktor penyebab. Untuk memperkuat argumentasi yang dikembangkan, artikel berisi studi kuantitatif yang melibatkan 824 pegawai dari berbagai wilayah di Indonesia sebagai responden. Responden sebagian besar adalah pegawai yang pertama kali bekerja dari rumah di instansi pemerintah dan organisasi swasta. Data yang dikumpulkan distrukturisasi
... Through the DID model, firms affected by the regulation are matched to firms not affected by the regulation in a control sample to diminish the impact of unobserved effects (Shevlin, Thornock, & Williams, 2017). This approach permits to delete fixed differences between eligible and non-eligible groups and considers post-regulation variations for the firms not affected by the regulation as a counterfactual for what would have occurred if firms affected by the regulation had not been eligible for the liberalization (Gubler, Larkin, & Pierce, 2017). ...
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There is a growing consensus among scholars that the liberalization of shop opening hours increases revenues and creates jobs. While this is probably true, prior literature does not provide evidence on the risks of this kind of liberalization on the reduction of firm performance, and how firms in the retail industry manage the risk of underperformance. In fact, although theory establishes a direct link between increasing of shop opening hours with revenues and employment, it is challenging to rule out how firms react to this and if there are effects on firm performance. While several studies on firms’ strategic choices on opening hours have recently been released, no empirical studies provide evidence on firm performance following a change in the regulation of shop opening hours. The study contributes to the literature adding evidence on consequences on firm performance, an aspect generally not analysed by prior scholars in this field. We explore the effects of extended shopping hours on performance faced by firms operating in retail industries. To this purpose, we collected data about a large sample of limited liability companies in Italy, where a reform was issued in 2012 to boost the economy even through liberalization of shop opening hours. Using data of Italian firms operating in the retail industries, we find that reducing restrictions on shopping hours increases revenues and personnel costs. Interestingly, our model predicts that the deregulation of shopping hours involves firm lower performance.
... Flammer & Luo, 2017) that helps enhance employees' identification with the firm (Flammer & Kacperczyk, 2019). Moreover, employee-related CSR will improve employee engagement, mitigate adverse behavior, and increase productivity (Flammer & Luo, 2017;Gubler, Larkin, & Pierce, 2018). Both internal (e.g. ...
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Intangible assets are becoming increasingly important to firms. However, the question of how firms can realize the full potential of intangible assets remains. We propose that corporate social responsibility (CSR) can help a company create value from intangible assets for two reasons. First, firms invest in CSR to increase employee loyalty, which in turn help retain knowledge workers. Second, firms engage in CSR activities to increase employees’ organizational identification, and to promote collaboration across units, which is crucial for the integration and alignment of intangible assets with other intangible assets and tangible assets. Moreover, we propose that institutional development may weaken the positive relationship between intangible assets and engagement in CSR, whereas product diversification may strengthen the relationship. Data analyses based on a sample of 4788 Chinese entrepreneurial firms provides support toward our main arguments. This study highlights a novel idea that firms may use CSR practices to realize the potential of their intangible assets. This study has important managerial implications as well.
... On the one hand, boundary-spanning organizations may increase CSR policy extensiveness at the corporate level, rather than retaining informal approaches among various sub-units and business segments, in order to gain efficiencies from standardization (Christmann, 2004;McWilliams & Siegel, 2001). Organizations spanning an array of products, sub-units, or nations may also use extensive CSR policies to coalesce or signal a pro-CSR organizational identity (Gössling & Vocht, 2007) that appeals to their various stakeholders, including workers (Gubler, Larkin, & Pierce, 2017), consumers (Bhattacharya & Sen, 2004), and regulators (Kinderman, 2012). The various industrial and geographic audiences that companies span, while having their own distinct preferences and tastes (Fleming & Waguespack, 2007;Levina & Vaast, 2005), may nonetheless respond well to organizations that position their identity around widely held social values that transcend local settings (Creed, Scully, & Austin, 2002;Kislov, 2014;Kislov, Hyde, & McDonald, 2017). ...
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... Much can be done on this front. For example, firms could consider implementing structured wellness programs and providing higher quality health insurance to their employees in order to enhance their employees' productivity and reduce sickness absenteeism (Dizioli and Pinheiro 2016;Gubler, Larkin, and Pierce 2017). ...
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Using rich longitudinal matched employer–employee data for Belgium, we provide a first investigation of the impact of sickness absenteeism on firms’ productivity. To do so, we estimate a production function augmented with a firm‐level measure of sickness absenteeism that we constructed from worker‐level information on nonworked hours due to illness or injury. We deal with the endogeneity of inputs and sickness absenteeism by applying a modified version of the semiparametric control function method developed by Ackerberg, Caves, and Fraser (2015), which explicitly takes firm fixed unobserved heterogeneity into account. Our main finding is that, in general, sickness absenteeism substantially dampens firms’ productivity. However, further analyses show that the impact varies according to several workforce and firm characteristics. Sickness absenteeism is more detrimental to firm productivity when absent workers are high tenure or blue collar. Moreover, it is especially harmful to industrial, capital‐intensive, and small enterprises. These findings are consistent with the idea that sickness absenteeism is more problematic when absent workers have in‐depth firm‐/task‐specific knowledge, when the employees’ work is highly interconnected (e.g., along the assembly line), and when firms face more organizational limitations in substituting absent workers.
... (a) ReviewScore, the overall company ratings by a REIT's employees; (b) Rec-ommend%, a percentage indicating how likely an REIT's employees recommend the firm to others; and (c) CEOApproval%, a percentage indicating to which extent a REIT's employees approve of their CEO's performance. The broader management literature suggests that a favorable working environment and employee health programs improve operational productivity of firms (Gubler, Larkin, and Pierce, 2018;Ødegaard and Roos, 2014). Moreover, recent studies on corporate culture show that an effective culture can motivate employees and increase firm performance because motivated employees alleviate moral hazard problems within firms (Graham et al., 2017;Guiso et al., 2015). ...
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... If mental health in some workers indeed degrades under P4P, then this represents an important cost to firm productivity that must be considered in compensation policy design. Poor health, whether mental of physical, has been widely linked to lower worker productivity (Currie & Madrian, 1999;Thayer, Newman, & McClain, 1994;Christian, Eisenkraft, & Kapadia, 2015;Gubler, Larkin, & Pierce, 2018). It is impossible for us to weigh possible motivational gains versus mental health costs in our data, so we are hopeful future data can better measure net benefits to performance. ...
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This paper provides evidence linking pay-for-performance (P4P) adoption by employers to long-term and serious mental health problems in employees. Matching survey-based data on P4P adoption by 1,309 Danish firms with wage, demographic, and medical prescription data of 318,717 full-time employees, we find a four to six percent increase in the usage of anti-depressant and anti-anxiety medication after firms adopt P4P. This change is strongest in low-performing and older workers. We also find that workers select in and out of P4P firms based on mental health considerations, which implies that mental health effects influence turnover. We similarly show that low performers are more likely to leave following P4P adoption. Finally, we show sizable but imprecise response differences from female and male employees to the mental health threat of performance-based pay. Women with latent or potential mental health concerns appear to leave firms after P4P adoption, while men do not. Although we cannot claim a causal relationship, collectively our results suggest a model where performance-based pay forces many employees to choose between leaving or else depression and anxiety. Our study expands existing work by showing that the mental health costs of performance-based pay can be severe enough to necessitate pharmaceutical treatment.
... Second, these data would need to be linked to health claims data that would provide a more comprehensive mental health picture (i.e., counseling) than our medication data. In the United States, firms are barred from possessing such data about employees, so the researcher would need to separately acquire employer and health plan data and then link and de-identify them under HIPAA compliant procedures (see Gubler et al., 2018 for an example). Ultimately, rich evidence on mechanisms would seem to require complementary survey data on the experiences, emotions, and preferences of the employees in the sample. ...
... If mental health in some workers indeed degrades under P4P, then this represents an important cost to firm productivity that must be considered in compensation policy design. Poor health, whether mental of physical, has been widely linked to lower worker productivity (Currie & Madrian, 1999;Thayer, Newman, & McClain, 1994;Christian, Eisenkraft, & Kapadia, 2015;Gubler, Larkin, & Pierce, 2018). It is impossible for us to weigh possible motivational gains versus mental health costs in our data, so we are hopeful future data can better measure net benefits to performance. ...
... Firms in both Denmark and the United States are typically legally barred from holding employee medical data, and medical data such as ours typically cannot be linked to individual data by researchers. Rare examples such as Gubler, Larkin, and Pierce (2018), which relies on policy changes at one small firm, typically do not have the statistical power to identify the net performance implications of policies that affect health. ...
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This paper provides evidence linking pay-for-performance (P4P) adoption by employers to long-term and serious mental health problems in employees. Matching survey-based data on P4P adoption by 1,309 Danish firms with wage, demographic, and medical prescription data of 318,717 full-time employees, we find a four to six percent increase in the usage of anti-depressant and anti-anxiety medication after firms adopt P4P. This change is strongest in low-performing and older workers. We also find that workers select in and out of P4P firms based on mental health considerations, which implies that mental health effects influence turnover. We similarly show that low performers are more likely to leave following P4P adoption. Finally, we show sizable but imprecise response differences from female and male employees to the mental health threat of performance-based pay. Women with latent or potential mental health concerns appear to leave firms after P4P adoption, while men do not. Although we cannot claim a causal relationship, collectively our results suggest a model where performance-based pay forces many employees to choose between leaving or else depression and anxiety. Our study expands existing work by showing that the mental health costs of performance-based pay can be severe enough to necessitate pharmaceutical treatment.
... Advocates claim that, due to better health and reduced absenteeism, company wellness programs achieve high productivity ROIs, substantial savings in employee benefit costs, and improvements in worker productivity (Baicker et al., 2010;Berry et al., 2010;Gubler et al., 2018). Baicker et al. (2010) report that every dollar spent on wellness programs achieves an average ROI of $3.27 for medical costs and $2.73 for absenteeism. ...
... Other research reports worker medical costs fall by $3.27 for every $1 spent on wellness programs and that absenteeism costs are reduced by $2.73 for every dollar spent (Kocakulah and Powers, 2015). Finally, Gubler, Larkin, and Pierce (2018) report that participation in wellness programs increases worker productivity by about ten percent. ...
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We examine organizational control in the context of wellness programs—organizational initiatives designed to improve the physical and mental health of employees. In a field study setting, we examine the associations of three different types of incentives (cash, gift cards, and tangible rewards) with wellness program performance. We find that employees who successfully complete program challenges are associated with greater weight loss. We also find participants choosing gift cards are associated with the greatest program success, even though cash rewards are selected more than twice as often as gift cards. Tangible rewards are the least frequently selected reward and are associated with lower performance than gift cards but relatively similar performance to cash. These results support theories of individual choice and motivation, and suggest that employees’ incentive choices are not necessarily aligned with the strongest motivational power.
... In contrast to new entrants, established subsidiaries in the host countries have already developed alternative mechanisms to navigate the local business landscapes, so they are less susceptible to adverse institutional environments ( Zhao et al., 2010). In contrast to externally oriented activities, internally oriented activities benefit from philanthropy in attracting talent and boosting employee morale (Bode, Singh, & Rogan, 2015;Burbano, 2016;Carnahan, Kryscynski, & Olson, 2017;Flammer & Luo, 2017;Gubler, Larkin, & Pierce, 2018) in the context of both strong and weak institutions. Therefore, philanthropic giving by corporate foundations is more helpful when the need for local outreach is high (with newly established businesses or with externally oriented activities) and when reaching out through formal institutions is difficult (in weak institutional environments). ...
... 20 At the country-firm-year level, we included the logarithm of the number of local employees in all models. Firms may feel more pressure to make charitable donations in a country in which they have a large employee base, since philanthropy is known to retain talent and motivate employees (Bode et al., 2015;Burbano, 2016;Carnahan et al., 2017;Flammer & Luo, 2017;Gubler et al., 2018). In addition, to control for the relationship between the local subsidiary and the parent company, we used diversification, the percentage of subsidiaries in a firm-country-year that have no overlap with the headquarters' SIC codes. ...
Article
Research Summary Corporate philanthropy has long been recognized as an important part of multinational strategy, yet we know relatively little how charitable giving is allocated across countries. Using a sample of 208 U.S.‐based corporate foundations from 1993 to 2008, we find that the foundations give more in countries with opaque institutional environments, but they do so through international intermediaries. They also give more when the funding firms have new entries in countries with weak institutions—hence greater needs for the social license to operate—or when their operations require stronger connections with local suppliers or customers. These findings point to the use of corporate philanthropy as part of corporate diplomacy when the local institutions are ineffective and the importance of reaching out to local constituents is high. (125 words) Managerial Summary Corporate foundations play an important role in firms’ charitable giving across countries. This paper analyzes how foundation giving is associated with the funding firm's need to navigate the local business environments. Using a sample of 208 U.S.‐based corporate foundations from 1993 to 2008, we find that foundations give more in countries characterized by weak rule of law and high levels of corruption, and when the funding firms have newly established subsidiaries or stronger need to connect with local stakeholders there. However, donations to countries with weak institutions are more likely to go through international intermediaries to avoid potential liabilities. The results are consistent with the view that corporate foundations support corporate diplomacy and help obtain the social license to operate in the host countries.