Compensation – THE Motivating Factor

Compensation is a tough subject in the world of HR Management, and rightfully so. Total compensation can come in a variety of packages, and while they may seem different, the motivation they create is the same. Have you ever turned down a job offer due to the compensation package?

In college, a friend of mine applied to her first post-grad job and was incredibly excited about the prospect of working for this specific firm. She had done multiple interviews and prayed she would receive an offer, especially with graduation quickly approaching, but when the offer arrived, she declined. Why? The compensation package was not what she had envisioned, so much so that she did not believe a counter offer would meet her standards, considering the starting offer. So what did this firm’s HR Management team learn from this scenario?

This firm learned two important lessons from this scenario. Firstly, that their interview process had strengths and weaknesses. While the interview process sells their firm, it does not prepare the candidate for the reality of the compensation available. Additionally, they may need to re-evaluate the compensation package for this position, and if upon evaluation this is a trend among candidates, it is possible a job analysis needs to be performed in order to correctly value the firm’s open positions.

The lessons learned from the outcomes of this scenario will not be soon forgotten by this firm, and should not be forgotten by us either! Compensation is an important component of Human Resources and must be treated as such.

References:

  1. Buckingham, M. (2016). First, Break All the Rules: What The World’s Greatest Managers Do Differently. Gallup Press.

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