Types of Compensation
What does compensation look like from your employer? Well, there are two components to compensation: Extrinsic and Intrinsic. Extrinsic would be things that are tangible, and they include things that are monetary and nonmonetary. an example would be things like base pay, incentives, and benefits. Intrinsic would be things like the intangible, phycological, and social effects of compensation.
Personal Story
My dad has been working at his local golf course for 10+ years, and his compensation has definitely affected his outlook of the business. Through out his time there, he has considered quitting because of a lack of pay. He has all the knowledge to fix things, solve problems, and be able to think on his feet. As he was hired as a maintenance mechanic, and as the years came his responsibilities became more complex and challenging, however his pay grade stay the same. He was hired on as hourly, and the owners have switched a few times during my dads time there.
Because of his responsibilities have increased, he asked for a raise. He was denied as he doesn’t have a high school diploma, even though he was more capable at his specific job than his coworkers. After being denied, he lowered his effort and took on less responsibility as he wasn’t receiving what he thought was fair. Eventually, after the owner realized what a great asset my dad was to the golf course, he slowly got a raise and several types of compensation. Such as free travel, a phone plan, and overtime pay.
My dad shows that depending on what he thinks is fair compensation, he will work at the level of compensation that is given to him.
