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

Authors

James R. Jones, University of Nebraska at OmahaFollow

Date of this Version

10-31-2001

Abstract

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.