The first example that came to mind when thinking about how compensation effects how an individual reacts in the workplace is the reasoning to my mom moving our family from California to Florida. This was a large move and decision in my family, and it all came down to her pay raise that she would be getting. She worked for a tile company for a very long time and ended up leaving that company to join with DHL due to more opportunities and the possibility for a brighter future. However, joining with DHL she knew she would be faced with a quick decision about relocation. This decision was ultimately made because of the pay difference of DHL from her last job as well as the more she would be getting paid when moving to Florida. With California taxes being so prevalent, this was a major difference.
Compensation led her to behave this way because first, she felt valued receiving this type of offer from another company. Since they would be paying her more, she felt that they wanted her more. Another reason that compensation would envoke this type of decision is because she knew others in her role at larger companies were receiving this type of pay. She was being underpaid according to comparison which she did not appreciate.
How compensation makes individuals feel has a lot to do with decision making in the workplace. Comparison and emotions will always be on the fore front of compensation and its effects.
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