Compensation practices in Central and Eastern European EU member states—an analytical framework based on institutional perspectives, path dependencies, and efficiency considerations

Research on compensation in Central and Eastern European (CEE) countries is scarce, and a comprehensive analysis of factors influencing the adoption and transformation of compensation practices in CEE countries is lacking. This article provides a holistic analytical framework based on a literature review, secondary data on selected compensation practices in CEE countries, and theoretical insights from various perspectives. These include path dependency from the pre‐transformation era; current coercive, mimetic, and normative isomorphic pressures; and efficiency‐based influences on compensation practices. Furthermore, implications are outlined both for future research on compensation management and for human resource management practice in CEE countries.