Compensation Blog Week 8

Compensation can be one of the most powerful forces when it comes to job motivation, and when used as an incentive. Whether it is base pay, bonuses, or other factors, companies will use this to motivate and retain the right workers. In my experience, I have had friends who had to pick between different internship job offers in the construction industry. While some companies offered handsome up-front pay, other companies offer an Employee Stock Ownership Plan. My friend ended up signing with the company that offered a stock ownership plan. Juggling higher pay in the short run with higher returns down the line can be tricky; employee-owned companies sound like the smarter way to go. By choosing the employee ownership route, you are also more likely to work hard towards improving the company, which can lead to higher stock pay in the future (Lecture 4, Week 8).

In Contrast, higher base pay can also be a main incentive for companies to motivate employees. Although company stock might not be an option for them, higher pay will make up for it. This might also be beneficial if an employee knows they will be moving to a new company after a certain amount of time. Additionally, in the construction industry, it is most common for the salaries to have a market-based approach. This means that pay is based on the market standards. Most construction firms prioritize the market-based approach because construction is a very mobile industry where employees can easily switch companies for better pay (Lecture 2 Week 8).

References:

Cieri, M. (2026). Lecture 2 Week 8. Department of Business, Oregon State University.

Cieri, M. (2026). Lecture 4 Week 8. Department of Business, Oregon State University.