While interning at a construction company this past summer in Seattle, I heard from a few full-time employees about why they chose to work for and stay at the company. While there are many options for construction companies to work for, especially in the greater Seattle area, employees continuously chose this company and to stay with them long-term, with a significant amount of employees who have been there for 10+ years. A primary reason employees gave for choosing this company was compensation.
As we learned in class, compensation accounts for some of the extrinsic and intrinsic rewards an employee earns in their job. Some of the extrinsic rewards that these employees mentioned they valued at the company are decent salaries, bonuses, COLAS, and stock options. Intrinsic rewards included feelings of satisfaction and fulfillment from getting to participate in special events for “old-timers” (employees who have been at the company for a long time) and from overall company project successes. The company more or less uses a merit pay system where employees receive increases in their pay based on performance evaluations, which the employees like. Overall, the highly competitive compensation plays a big part in making employees want to stay at the company.
Why Compensation Motivated This Behavior and Made People Want To Stay
We learned in the HBR article “Most people have no idea whether they’re fairly paid” that, unsurprisingly, how much people get paid can affect them emotionally as it represents their value at a company (Smith 1). While money and other rewards aren’t everything a person looks for in a job, compensation can still play a large role in helping a person make career decisions. Especially in highly competitive markets like the construction industry, it is important for companies to give employees a good reason to work for them instead of someone else. Providing good compensation can set companies apart from others in the industry. Like with the company I worked for this summer, people wanted to work for this company because it offered the best compensation in their opinion. These employees wanted to work somewhere where they feel their work matters and will get recognized, and the compensation at this company makes them feel that way. Employees at this organization also likely chose this company because of its special compensation perks that many companies don’t have, like the ability to have company stock. Finally, the people who work at this company not only want to succeed individually, but want the entire company succeed, so they chose to work for an organization where there will be extra compensation when the company overall is successful, such as stock compensation in the form of payouts as well as feelings of gratification from working for a winning team.
Reference:
Smith, D. (2015). Most people have no idea whether they’re paid fairly
Links to an external site.. Harvard Business Review, 93(12), 1-3