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This paper reports two studies involving data collected from 583 participants in Hong Kong and 121 participants in the People’s Republic of China (PRC), and examines the most popular compensation components offered by organizations to employees and participants’ perceptions regarding the five most important compensation components to retain and motivate people in Hong Kong and PRC, respectively. Results suggested that in Hong Kong, base salary, merit pay, year‐end bonus, annual leave, mortgage loan, and profit sharing were the most important factors to retain and motivate employees. In China, base salary, merit pay, year‐end bonus, housing provision, cash allowance, overtime allowance, and individual bonus were the most important factors to retain and motivate employees. Results are discussed in light of economic, geographic, and culture‐related factors.
Chiu et al. (Sun,) studied this question.
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