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Under the Surface of Individual and Differentiated Pay in Sweden: A Zero‐Sum Game of Performance‐Based Pay?

Journal article
Authors Ylva Ulfsdotter Eriksson
Bengt Larsson
Petra Adolfsson
Published in British Journal of Industrial Relations
ISSN 0007-1080
Publication year 2020
Published at Department of Business Administration
Department of Sociology and Work Science
Centre for European Research (CERGU)
Centre for Global Human Resource Management
Language en
Links https://doi.org/10.1111/bjir.12561
Keywords individual and differentiated wages; performance-based pay; regulative, normative and cultural-cognitive institutions; collective agreements; normative mark; employee expectations.
Subject categories Sociology (excluding Social Work, Social Psychology and Social Anthropology)

Abstract

Wage formation in Sweden has been decentralized, and the introduction of individual performance‐based pay has increased employer discretion. This article explores practices of local‐level wage determination and argues that existing analyses still have too much focus on the formal (regulatory) institutions to explain what that is going on under the surface. Drawing on interviews with HR, managers, employees and union representatives from both public and private sector organizations, the study concludes that individual and differentiated wage‐setting is delimited locally by small budgets and the actors’ cultural–cognitive and normative expectations. Even though there have been radical changes in collective agreements and policies, we find strong elements of path dependency in local wage determination practices.

Page Manager: Webmaster|Last update: 9/11/2012
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