CXO

The Use Of Stock Options And Retirement Plans To Retain Non-Executive Employees

Date Added: Mar 2010
Format: PDF

Increased employee tenure is beneficial for firms for many reasons. It can improve returns on training costs and reduce monitoring costs by emphasizing long-term performance. In addition, repetition over time increases worker accuracy or proficiency, and efficiency is higher for teams that have worked together longer Orazem, Bouillon and Doran (2004) find a positive association between return on assets and employee tenure, and suggest that firm investments in firm-specific training, pension or benefit policies, deferred pay policies and human resources practices should be associated with higher firm value.