chapter  37
10 Pages

Rewards in European transition states

WithIhar Sahakiants, Marion Festing

The specifics of reward systems in European transition states are discussed. Sometimes referred to as ‘post-communist’ states, these countries share, with a few exceptions, the common history of centrally planned economies and particular social welfare systems, the echoes of which can be still observed in current organizational practices. Along with a discussion on such path dependence and its impact on the provision of various rewards, such as social benefits or ‘pay for performance’, we provide an overview of the extant research on systems and practices implemented after the fall of state-socialist regimes for different groups of employees in organizations operating in this region. Furthermore, we point out the particularities of corporate governance in European transition states and the related issue of executive rewards in these countries. Finally, avenues for future research are discussed.