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      • September 2023
      • Article

      Corporate Purpose in Public and Private Firms

      By: Claudine Gartenberg and George Serafeim
      Analyzing data from approximately 1.5 million employees across 1,108 established public and private US companies, we find that the strength of employee beliefs related to purpose is weaker in public companies. Among public companies, those beliefs are stronger for...  View Details
      Keywords: Purpose; Corporate Purpose; Culture; Corporate Culture; Public And Private Organizations; Hedge Fund; Executive Pay; Corporate Governance; Corporate Strategy; Organizational Culture; Mission and Purpose; Employees; Attitudes; Executive Compensation; Ownership
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      Gartenberg, Claudine, and George Serafeim. "Corporate Purpose in Public and Private Firms." Management Science 69, no. 9 (September 2023): 5087–5111.
      • 2023
      • Article

      Conduit Incentives: Eliciting Cooperation from Workers Outside of Managers' Control

      By: Susanna Gallani
      Can managers use monetary incentives to elicit cooperation from workers they cannot reward for their efforts? I study “conduit incentives,” an innovative incentive design, whereby managers influence bonus-ineligible workers’ effort by offering bonus-eligible employees...  View Details
      Keywords: Organizational Behavior Modification; Peer Monitoring; Persistence Of Performance Improvements; Crowding Out; Implicit Incentives; Compensation; Healthcare; Social Pressure; Image Motivation; Incentives; Motivation; Performance; Behavior; Motivation and Incentives; Compensation and Benefits; Governing Rules, Regulations, and Reforms; Organizational Culture; Health Industry; California
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      Gallani, Susanna. "Conduit Incentives: Eliciting Cooperation from Workers Outside of Managers' Control." Accounting Review 93, no. 3 (2023): 1–28.
      • May 2023
      • Article

      Incentive Effects of Subjective Allocations of Rewards and Penalties

      By: Wei Cai, Susanna Gallani and Jee-Eun Shin
      We examine the incentive effects of subjectivity in allocating tournament-based rewards and punishments. We use data from a company where reward and punishment decisions are based on a combination of objective metrics and subjective performance assessments. Rankings...  View Details
      Keywords: Subjectivity; Tournament-based Incentives; Rewards; Penalties; Expectancy Theory; Employees; Compensation and Benefits; Management; Decisions; Performance; Measurement and Metrics
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      Cai, Wei, Susanna Gallani, and Jee-Eun Shin. "Incentive Effects of Subjective Allocations of Rewards and Penalties." Management Science 69, no. 5 (May 2023): 3121–3139.
      • April 24, 2023
      • Article

      In the COVID Era, Why Corporate Benefits Demand CEO/CFO Leadership

      By: Regina E. Herzlinger
      The expectation that employers provide their employees’ health benefits has been around since World War II. Unfortunately, although today’s employees expect employers to treat them as individuals, ease their experiences, prioritize their wellbeing, and control cost,...  View Details
      Keywords: COVID; COVID-19 Pandemic; CEO; Leadership; Health Insurance; Benefits; CFO; Compensation and Benefits
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      Herzlinger, Regina E. "In the COVID Era, Why Corporate Benefits Demand CEO/CFO Leadership." CMR Insights (April 24, 2023).
      • April 2023 (Revised July 2023)
      • Case

      Fermenting Accounting Problems at Vermont Kombucha Corp.

      By: Tatiana Sandino and Marshal Herrmann
      Founded in 2005, Vermont Kombucha Corp. (V-Ko) was an early mover in the fledgling U.S. market for kombucha, a drink brewed for its health benefits. Early on, the company captured more than 90% of market share. Under the leadership of its founder and CEO, Joe Williams,...  View Details
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      Sandino, Tatiana, and Marshal Herrmann. "Fermenting Accounting Problems at Vermont Kombucha Corp." Harvard Business School Case 123-064, April 2023. (Revised July 2023.)
      • Spring 2023
      • Article

      Incentive Contract Design and Employee-Initiated Innovation: Evidence from the Field

      By: Wei Cai, Susanna Gallani and Jee-Eun Shin
      This study examines how the design of incentive contracts for tasks defined as workers’ official responsibilities (i.e., standard tasks) influences workers’ propensity to engage in employee-initiated innovation (EII). EII corresponds to innovation activities that are...  View Details
      Keywords: Employee-initiated Innovation; Contract Design; Rank-and-file; Extra-role Behaviors; Compensation and Benefits; Motivation and Incentives; Innovation and Management
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      Cai, Wei, Susanna Gallani, and Jee-Eun Shin. "Incentive Contract Design and Employee-Initiated Innovation: Evidence from the Field." Contemporary Accounting Research 40, no. 1 (Spring 2023): 292–323.
      • April 2023
      • Teaching Note

      Netflix’s Culture: Binge or Cringe?

      By: Hubert Joly, Leonard A. Schlesinger, James Barnett and Stacy Straaberg
      In April 2022, streaming entertainment company Netflix lost customers for the first time in more than 10 years. Once a first mover in the streaming landscape, Netflix was facing competition from Amazon Prime Video, Disney+, HBO Max, and others. A key component of...  View Details
      Keywords: Compensation and Benefits; Employees; Recruitment; Resignation and Termination; Retention; Selection and Staffing; Innovation and Management; Innovation Strategy; Leadership Style; Business or Company Management; Management Style; Media; Business Processes; Organizational Culture; Organizational Structure; Performance Expectations; Performance Productivity; Creativity; Business Strategy; Entertainment and Recreation Industry; Media and Broadcasting Industry; Motion Pictures and Video Industry; Video Game Industry; North America; California; Canada; Europe; Middle East; Africa; Asia; Latin America
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      Joly, Hubert, Leonard A. Schlesinger, James Barnett, and Stacy Straaberg. "Netflix’s Culture: Binge or Cringe?" Harvard Business School Teaching Note 523-004, March 2023.
      • March 2023
      • Case

      Walmart’s Live Better U

      By: Boris Groysberg, Annelena Lobb and Kerry Herman
      Walmart’s Live Better U (LBU) program, which allowed its frontline employees and managers to attend college at Walmart’s expense, had expanded and changed over the course of five years. How could Walmart better develop the program for its associates and use it to meet...  View Details
      Keywords: Talent and Talent Management; Compensation and Benefits; Higher Education
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      Groysberg, Boris, Annelena Lobb, and Kerry Herman. "Walmart’s Live Better U." Harvard Business School Case 423-057, March 2023.
      • March 2023 (Revised May 2023)
      • Background Note

      Workforce Change: The Hidden Costs of Layoffs and Managing Staff Reductions

      By: Sandra J. Sucher, Marilyn Morgan Westner and Christopher Diak
      Globally, over the past fifty years, more companies have used layoffs to cut costs during periods of decreased demand or economic downturns. But layoffs have far-reaching consequences, generate hidden costs, and harm the company in myriad ways. This note reviews ways...  View Details
      Keywords: Human Resource Management; Layoffs; Furloughs; Human Resources; Management Practices and Processes; Employee Relationship Management; Resignation and Termination; Compensation and Benefits; United States
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      Sucher, Sandra J., Marilyn Morgan Westner, and Christopher Diak. "Workforce Change: The Hidden Costs of Layoffs and Managing Staff Reductions." Harvard Business School Background Note 323-073, March 2023. (Revised May 2023.)
      • March 2023 (Revised June 2023)
      • Case

      Layoffs in the Tech Industry: 2022–2023

      By: Sandra J. Sucher and Marilyn Morgan Westner
      This case examines the mass layoffs that swept through the tech industry (2022-2023) through the lens of four companies: Twitter, Stripe, Meta, and Google. How these companies implemented workforce change through mass layoffs raises critical questions applicable beyond...  View Details
      Keywords: Layoffs; Human Resource Management; Workforce Reductions; Ethics; Human Resources; Management; Values and Beliefs; Employee Relationship Management; Resignation and Termination; Compensation and Benefits; Technology Industry; United States; United Kingdom
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      Sucher, Sandra J., and Marilyn Morgan Westner. "Layoffs in the Tech Industry: 2022–2023." Harvard Business School Case 323-095, March 2023. (Revised June 2023.)
      • January–February 2023
      • Article

      Rethink Your Employee Value Proposition: Offer Your People More Than Just Flexibility

      By: Mark Mortensen and Amy C. Edmondson
      A lot of leaders believe that the formula for attracting and keeping talent is simple: Just ask people what they want and give it to them. The problem is, that approach tends to address only the material aspects of jobs that are top of employees’ minds at the moment,...  View Details
      Keywords: Compensation and Benefits; Retention; Recruitment; Mission and Purpose; Organizational Culture; Satisfaction
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      Mortensen, Mark, and Amy C. Edmondson. "Rethink Your Employee Value Proposition: Offer Your People More Than Just Flexibility." Harvard Business Review 101, no. 1 (January–February 2023): 45–49.
      • 2023
      • Working Paper

      Too Many Managers: The Strategic Use of Titles to Avoid Overtime Payments

      By: Lauren Cohen, Umit Gurun and N. Bugra Ozel
      We find widespread evidence of firms appearing to avoid paying overtime wages by exploiting a federal law that allows them to do so for employees termed as “managers” and paid a salary above a pre-defined dollar threshold. We show that listings for salaried positions...  View Details
      Keywords: Wages; Organizational Design; Job Design and Levels; Compensation and Benefits
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      Cohen, Lauren, Umit Gurun, and N. Bugra Ozel. "Too Many Managers: The Strategic Use of Titles to Avoid Overtime Payments." NBER Working Paper Series, No. 30826, January 2023.
      • December 2022 (Revised June 2023)
      • Case

      KKR at CHI Overhead Doors (A)

      By: Dennis Campbell and Ethan Rouen
      This case examines the decision by private equity firm KKR to grant equity to every employee at portfolio company CHI Overhead Doors upon purchasing the company in 2015. The case explores whether this initiative will create shared value, growing profits through better...  View Details
      Keywords: Performance Improvement; Profit Sharing; Compensation and Benefits; Organizational Culture
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      Campbell, Dennis, and Ethan Rouen. "KKR at CHI Overhead Doors (A)." Harvard Business School Case 123-018, December 2022. (Revised June 2023.)
      • 2022
      • White Paper

      The American Opportunity Index: A Corporate Scorecard of Worker Advancement

      By: Matt Sigelman, Joseph Fuller, Nik Dawson and Gad Levanon
      The American Opportunity Index: A Corporate Scorecard of Worker Advancement is a new effort to give companies and other stakeholders a set of robust tools that measure how well major employers are doing in fostering economic mobility for workers and how they could do...  View Details
      Keywords: Upward Mobility; Career Advancement; Personal Development and Career; Compensation and Benefits; Employees; Wages; Human Capital; Recruitment
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      Sigelman, Matt, Joseph Fuller, Nik Dawson, and Gad Levanon. "The American Opportunity Index: A Corporate Scorecard of Worker Advancement." White Paper, Burning Glass Institute, October 2022 (A joint project with Harvard Business School Project on Managing the Future of Work and Schultz Family Foundation.)
      • 2022
      • Working Paper

      What's My Employee Worth? The Effects of Salary Benchmarking

      By: Zoë B. Cullen, Shengwu Li and Ricardo Perez-Truglia
      While U.S. legislation prohibits employers from sharing information about their employees’ compensation with each other, companies are still allowed to acquire and use more aggregated data provided by third parties. Most medium and large firms report using this type...  View Details
      Keywords: Information Sharing; Wages; Policy; Compensation and Benefits
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      Cullen, Zoë B., Shengwu Li, and Ricardo Perez-Truglia. "What's My Employee Worth? The Effects of Salary Benchmarking." NBER Working Paper Series, No. 30570, October 2022. (Under revision at the Review of Economic Studies.)
      • June 2022 (Revised September 2022)
      • Case

      Netflix’s Culture: Binge or Cringe?

      By: Hubert Joly, Leonard A. Schlesinger, James Barnett and Stacy Straaberg
      In April 2022, streaming entertainment company Netflix lost customers for the first time in more than 10 years. Once a first mover in the streaming landscape, Netflix was facing competition from Amazon Prime Video, Disney+, HBO Max, and others. A key component of...  View Details
      Keywords: Compensation and Benefits; Employees; Recruitment; Resignation and Termination; Retention; Selection and Staffing; Innovation and Management; Innovation Strategy; Leadership Style; Business or Company Management; Management Style; Media; Business Processes; Organizational Culture; Organizational Structure; Performance Expectations; Performance Productivity; Creativity; Business Strategy; Entertainment and Recreation Industry; Media and Broadcasting Industry; Motion Pictures and Video Industry; Video Game Industry; North America; California; Canada; Europe; Middle East; Africa; Asia; Latin America
      Citation
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      Joly, Hubert, Leonard A. Schlesinger, James Barnett, and Stacy Straaberg. "Netflix’s Culture: Binge or Cringe?" Harvard Business School Case 522-096, June 2022. (Revised September 2022.)
      • 2022
      • Working Paper

      A Conceptualization of Sub-Living Wages: Liabilities, Leverage, and Risk

      By: Drew Keller, Katie Panella and George Serafeim
      Currently the accounting system records employee wages as an expense in the income statement. However, paying below living wages can expose an organization to reputational and operational risks. In this paper, we offer an alternative conceptualization of the issue of...  View Details
      Keywords: Accounting; Impact Accounting; Leverage; Wages; Compensation and Benefits; Business and Stakeholder Relations; Business and Government Relations; Social Issues; Human Capital
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      Keller, Drew, Katie Panella, and George Serafeim. "A Conceptualization of Sub-Living Wages: Liabilities, Leverage, and Risk." Harvard Business School Working Paper, No. 22-076, June 2022.
      • May 2022
      • Article

      Variance Analysis: New Insights from Health Care Applications

      By: Robert S. Kaplan and Susanna Gallani
      We use a health care application to illustrate how variance analysis can be used to benchmark costs across similar service delivery sites. Variances for personnel costs, typically the largest cost component in service organizations, are calculated for price, quantity,...  View Details
      Keywords: Variance Analysis; Benchmarking; Time-Driven Activity-Based Costing; Health Care; Activity Based Costing and Management; Health Care and Treatment; Service Delivery; Service Industry
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      Kaplan, Robert S., and Susanna Gallani. "Variance Analysis: New Insights from Health Care Applications." Issues in Accounting Education 37, no. 2 (May 2022): 27–36.
      • March 2022 (Revised January 2023)
      • Case

      Innovation at Moog Inc.

      By: Brian J. Hall, Ashley V. Whillans, Davis Heniford, Dominika Randle and Caroline Witten
      This case focuses on the challenges of incentivizing innovation within Moog, an engineering company based in New York state that designs and builds guidance systems for space, air, and land-based travel. The case enables students to grapple with the challenges of using...  View Details
      Keywords: Innovation; Innovation Lab; Innovation Management; Motivation; Incentives; Culture; Compensation; Compensation And Benefits; Scalability; Business Growth and Maturation; Collaborative Innovation and Invention; Independent Innovation and Invention; Innovation and Management; Innovation Leadership; Innovation Strategy; Organizational Culture; Performance Consistency; Performance Effectiveness; Performance Efficiency; Performance Productivity; Performance Evaluation; Creativity; Motivation and Incentives; Aerospace Industry; Transportation Industry; United States
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      Hall, Brian J., Ashley V. Whillans, Davis Heniford, Dominika Randle, and Caroline Witten. "Innovation at Moog Inc." Harvard Business School Case 922-040, March 2022. (Revised January 2023.)
      • March 2022 (Revised April 2022)
      • Teaching Note

      France Télécom (A), (B), and (C)

      By: Ashley Whillans
      This case series discusses the evolution of France Télécom (now Orange) from a national telephone monopoly to a private company. During this process, the company faced numerous challenges including the entry of new competition from other countries and a workforce that...  View Details
      Keywords: Competition; Compensation and Benefits; Employee Relationship Management; Business Organization; Well-being; Communications Industry; Telecommunications Industry; France
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      Whillans, Ashley. "France Télécom (A), (B), and (C)." Harvard Business School Teaching Note 722-438, March 2022. (Revised April 2022.)
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