People of Color in Predominantly White Institutions

 

Title

Why Can't We Wait (To Spend) and the Law of Unintended Consequences: Potential Negative Impact on Minority Employees from Well-Intentioned Organizational Compensation Practices

Document Type

Article

Date of this Version

October 2001

The presenter outlines a theoretical argument suggesting that organizational attempts to increase short- and long-term motivation and loyalty may unwittingly exacerbate career and financial growth problems for some "minority" workers. Research on ethnic cultural tendencies and individual differences in spending propensities is used to support the notion that the use of incentive-based compensation systems and retirement programs could lead to employees being both undermined in terms of financial health and "slotted" into divergent career paths.