Percentage of establishments in each group reporting to have a formal TMP
Figure 9: Existence of formal TMPs and internal labour markets 25 20 15
10 5 0 -5
0-20%
21-40%
41-60%
61-80%
81-100%
-10 % of current FT employees that have opportunities for career advancement % of current senior positions that were internal promotions
Source: BPSS data. Finally, we review the relationship between the shape of rewards related to pay and the existence of TMPs. We focus on three aspects, namely the share of full-time employees with:
High wages (more than $6,000 per month); Access to a bonus based on overall performance of the company; and Access to individual performance related pay.
All three aspects are positively related to the existence of TMP – in particular in the case of high pay (Figure 10). Figure 10 relates the extent to which the existence (and spread) of high salaries, bonus for overall performance and individual performance related to pay within the establishment and the existence of formal talent management programme are related. Again, 20 percent is taken as a baseline for illustrative purposes. The figure shows that almost 20 percent of those establishments, where 0–20 percent of employees earn over $6,000 per month, reported having a formal talent management programme, whereas around 31 percent of those that reported that between 21–40 percent of their employees earn over $6,000 per month did. TMPs are more common in companies in which a high proportion of the workforce receives high salaries. When only a small proportion of employees in the establishment have access to individual performance-related pay, TMPs are much less common than in companies where higher proportions of the workforce receive it. This is also the case for bonus payments, relating to the overall performance of the company, but here differences are smaller. This would be consistent with the argument that TMPs may be used as a way to legitimise pay differences based on individual differences.
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