Compensation incentivizes behavior

Employees are very drawn to the salary when they are searching for a job, and it will determine if they will apply to the job or not. If the company offers the employee a salary too low that they believe they deserve more than will likely turn down the job due to the compensation part.

When Covid first hit, I was working at a restaurant down in Corvallis. I received any text from our manager that we were only going to do take out orders. A few days after that we all received another text, and that said we would be laid off. I was able to still work through this time, and once we could open back to dining many employees decided to not come back. The reasoning was because they found another job during the time they were laid off, and they were earning more money than they were being paid at the restaurant, and they were working less hours than they did at the restaurant. These incentives drew the employees in and they didn’t have to work as much and got paid more. Even if the restaurant job was more the career they preferred, but the job my co-workers have now pays them more. When they got the offer to come back the restaurant didn’t offer them more money therefore they stayed their job that they had. They behaved that way due to the fact they didn’t feel the restaurant wanted them.

Many people tend to stay in the job that pays the better salary instead of the job they enjoy and want to continue working there for because it’s their passion. Sometimes people apply to different jobs they can receive the counter offer, and then come back to their work telling them about the job that offered them more money. It can determine if the company really wants you to stay with them. In this case it was them seeing if the restaurant wanted them to come back to them, and they didn’t offer than more money. This goes backs our lecture and employee’s “have a fairness method” where they make their compensation comparison. This is what many people do when they they tell their job they are at about their counter offer.