Hey everyone,
A situation in which I can recall someone engaging in a decision based upon a compensating factor was my friend getting an extra $1000 when referring a friend that ended up getting hired at his company. I have heard of this type of compensation before and I think it is a fairly common practice when companies are trying to get people in the door as it is quite effective. I think the compensation motivated this behavior as my friend would basically be getting $1000 for minimal effort and started asking us if we were looking for a job and that his company had multiple opportunities open up. He did inform us that he would be getting a compensation for referring someone but the catch was that the person hired had to work for at least 30 days before the referrer received the $1000. I think the fact that $1000 is a lot of money and that he really does not have to do much led my friend to behave in the way he did as he really wanted to 1) work with a friend and 2) receive $1000 with minimal effort. Along with the $1000 compensation, every person that you refer and gets hired after the first adds another $500 so it can add up very quickly. It has been very interesting to learn about the different aspects of compensation that take place and it is very eye opening when you actually see them happen.
Thanks for reading!
Thomas
