Abstract
We determined which compensation practices of American-owned plants in Mexico reduced turnover. Regression revealed that profit-sharing and saving plans lowered turnover, while most pay forms did not. We discussed these findings within a national culture approach to compensation administration.
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*Janice S. Miller is Assistant Professor in the School of Business at the University of Wisconsin-Milwaukee. She has done research on compensation, performance appraisal, and employee development.
**Peter W. Hom is Management Professor at Arizona State University. He has investigated turnover theories and realistic job previews and has authored Retaining Valued Employees (Sage, 2001).
***Luis R. Gomez-Mejia belongs to the Dean's Council of 100 Distinguished Scholar and is a Professor at Arizona State. He has researched macro compensation issues, executive compensation, and compensation strategy.
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Miller, J., Hom, P. & Gomez-mejia, L. The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover?. J Int Bus Stud 32, 585–595 (2001). https://doi.org/10.1057/palgrave.jibs.8490986
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DOI: https://doi.org/10.1057/palgrave.jibs.8490986