Week 8 Blog:

Compensation and pay usually has a bigger effect on employee output whether individuals want to say it or not. I have personally experienced loss in job satisfaction due to low rates and I have also known individuals who have left companies for better pay. In my situation, I was working for a golf club for two summers and they decided to not raise my pay the following summer. I was fully expecting them to raise me a couple of dollars an hour because of the experience that I brought to the company compared to a new hire. This was difficult news to be and caused me to have slightly lower job satisfaction because I felt that I was working harder than what I should have been paid. In my own head I was comparing the equity ratio and setting my output in comparison to my input (Swift). In the first summer, I did not care so much about my pay because I had little experience and wanted to work hard to obtain any further compensation. In addition to my case, I also have a relative that left his current job for another position with a competing company solely based on pay. This was a situation where the company he was formerly at was not providing competitive pay in the industry and refused to further compensate him. In his case, he was analyzing his external equity and determining what was the fair competitive pay in his industry. Compensation and Pay shouldn’t be the only reason for deciding where to work and for what company, but it is a huge component in their career because they sacrifice their time and should be rewarded properly.

Blog By: Kyle Kirsch