Founding conditions and benefit offerings: evidence from US startups

PurposeThe purpose of this paper is to answer the following research question: at the time of founding of a startup, what entrepreneurial conditions would influence the long-term offerings of HR benefits? To answer this question, our study examines the effects of four founding conditions of startups – total assets, founder’s education, industry experience and startup experience – on the basis of the resource-based view of firms.Design/methodology/approachUsing data from the Kauffman Firm Survey (KFS) conducted in the period 2005–2010, this paper analyzed the relationships between the founding conditions and the offering of HR benefits by 4,148 new ventures during the first five years after founding. In addition, this paper examined the relationships of the same founding conditions to the offering of each of seven specific benefits: alternative work schedule, bonus plan, health insurance, paid time off, retirement plan, tuition reimbursement and stock options.FindingsThree conditions at founding – total assets, founders’ education level, industry experience – have a positive and enduring influence on the offering of HR benefits to the employees. Startup experience has a significant effect on benefit offerings during the first year after founding but no significant effect on benefit offerings in subsequent years. All founding conditions have significant and long-lasting positive effects on each benefit, except for startup experience, which has a negative effect on some benefits.Originality/valueThe HRM literature indicates that there has been a surprising gap between practical interest and academic research with regard to benefits. In addition, there is a dearth of research on how entrepreneurs make strategic decisions such as offering benefits to their employees. The study represents an attempt to fill in this gap.

Judicial Appeal of Due Process Hearing Rulings: The Extent and Direction of Decisional Change

Extending the scope of two exploratory single-state studies, this empirical analysis determined the extent and direction of the outcome change from the impartial hearing officer (IHO) decision to the final court decision for a national sample of cases under the Individuals With Disabilities Education Act. Based on a random sample of 116 published court decisions from 1998 through 2016, the authors identified the rulings for “issue categories,” such as eligibility, free appropriate public education, and tuition reimbursement, in the final court decision and, via its published opinion, the preceding adjudicative levels down to the IHO. The primary finding for the 183 issue category rulings was that 70% had only slight or no change from the IHO to the final court level. Other findings included the following: (a) the net change was higher for states with a second administrative tier, which is a review officer, than for those with only the single tier of an IHO; (b) the net change was also higher for cases reaching the appellate rather than only the trial court level; and (c) the most frequent issue categories were free appropriate public education (55%) and tuition reimbursement (18%), both with a slight net outcome change in the district’s direction.

Bang for the buck: Understanding employee benefit allocations and new venture survival

Providing employee benefits is costly for new ventures, yet offering such inducements is often essential to developing human capital. While a broad combination of employee benefits could yield synergistic effects, adopting a large number of benefits may not be feasible for resource constrained ventures. To ensure survival, while limiting misallocation of scarce resources towards benefits that have lower returns, entrepreneurs must be selective in choosing the benefits that generate the most ‘bang for the buck’. Our study assesses the effects of employee benefit offerings on venture survival odds. Based on a longitudinal sample of 1012 US-based ventures from the Kauffman Firm Survey and leveraging, signalling and motivation theories, we find that offering health insurance, flexible work schedules, paid vacation, or paid sick leave increase the odds of survival. However, offering employee stock ownership plans or tuition reimbursement has no significant influence on the odds of survival.

Starbucks puts a degree on the menu for 135,000 employees

Purpose – This paper aims to describe how coffeehouse chain Starbucks has teamed up with Arizona State University (ASU) to offer a big discount on online undergraduate education for 135,000 employees. Design/methodology/approach – It outlines the origins of the Starbucks college achievement plan, the form it takes and the aims it seeks to achieve. Findings – It explains that employees admitted to ASU as a junior or senior earn full tuition reimbursement for each semester of full-time coursework they complete toward a bachelor’s degree. Students already in their first or second years of study are eligible for a partial tuition scholarship and need-based financial help for two years of full-time study. Employees do not have to carry on working at Starbucks after graduation. Practical implications – It reveals that the Starbucks investment is designed to support the nearly 50 per cent of college students in the USA today who fail to complete their degrees because of a mounting debt, a tenuous work-life balance and a lack of support. Social implications – It claims that the scheme can help to repair the fractured American dream. Originality/value – It demonstrates how the Starbucks college achievement plan will provide an academic foundation along with the flexibility, financing and support that working students need to complete their degree.

Using the Bartering System in Nursing: Can Service-Learning Curricula Be Bartered for Tuition Reimbursement?

To be adequately prepared to care for patients in the 21st century, nurses will need to obtain advanced degrees. However, rising tuition costs and limited tuition reimbursement may make returning to school economically prohibitive for talented and motivated nurses. This article suggests that one solution maybe the use of bartering for employer tuition dollars through the completion of service-learning course projects. Because health care organizations generally have a long list of needed but unfunded projects that need to be completed, and educators often grapple with ways to create meaningful registered nurse learning experiences, service and education working collaboratively have the potential to engage nurses in real-time projects that can improve patient care processes and outcomes.