A taxonomy of reward preference: Examining country differences

Reward practices that are effective in one country may be very different from those that are successful in others. This is largely due to reward preference, which is shaped by individual needs, values and expectations. By integrating both the theories of motivation and culture, this study examines employee reward preference in four countries: the United Kingdom, Canada, Finland and Hong Kong. A construct for examining the multi-dimensional nature of reward is used, the type-system-criterion (TSC) model, to identify where specific differences in reward preference lie. The findings lend support to and extend the existing body of research. Yet, in contrast to prior research, empirical analysis reveals that while preferences for certain types of rewards remain relatively divergent, differences in preferences for both reward systems and the criteria by which rewards are allocated are diminishing as the forces of convergence take hold. The findings are particularly relevant to managers engaged in the design and implementation of reward practices in a MNC environment and open reward research to a promising new direction.