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WHAT DRIVES PROMOTIONS IN INFRASTRUCTURE COMPANIES?

Carlos Anta Callersten, José Luis Arroyo Barrigüete

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Abstract

This technical note summarizes the main results of Anta Callersten and Arroyo-Barrigüete (2019) on factors affecting the promotion of employees in an infrastructure company. Based on a sample of 5,150 employees, the conclusion is that salary revisions of less than 10% are almost exclusively linked to performance, while the highest salary increases are usually assigned to employees with higher potential. This result seems compatible with the general theory of remuneration, in which the annual variable remuneration rewards the results of each year and fixed salary revisions (promotions) respond to the development of the employee's professional career. Keywords: Human resources, performance, potential, wages.

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What this paper is about

This technical note summarizes the main results of Anta Callersten and Arroyo-Barrigüete (2019) on factors affecting the promotion of employees in an infrastructure company. Based on a sample of 5,150 employees, the conclusion is that salary revisions of less than 10% are almost exclusively linked to performance, while the highest salary increases are usually assigned to employees with higher potential. This result seems compatible with the general theory of remuneration, in which the annual variable remuneration rewards the results of each year and fixed salary revisions (promotions) respond to the development of the employee's professional career. Keywords: Human resources, performance, potential, wages.

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Available abstract

This technical note summarizes the main results of Anta Callersten and Arroyo-Barrigüete (2019) on factors affecting the promotion of employees in an infrastructure company. Based on a sample of 5,150 employees, the conclusion is that salary revisions of less than 10% are almost exclusively linked to performance, while the highest salary increases are usually assigned to employees with higher potential. This result seems compatible with the general theory of remuneration, in which the annual variable remuneration rewards the results of each year and fixed salary revisions (promotions) respond to the development of the employee's professional career. Keywords: Human resources, performance, potential, wages.

Key concepts: Remuneration, Salary, Promotion (chess), Business, Sample (material), Marketing, Accounting, Finance

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