Workplace Compensation & Motivation

It is often understood how pay is a motivating factor for employees and reflects the overall effort and motivation given by employees. At the same time, pay levels also effect if employees will stay at a given company. In the article, Most People Have No Idea Whether They’re Paid Fairly, by Harvard Business Review the author share how employees have an overall lower perception of their pay as companied to the actual market level. This highlights how important it is for companies to reflect the market level and their level of pay for all employees and share what must be done by employees to move up within the pay scheme. The article also explains how companies that pay under the market level but still explain this information to employees everyone is on the same page and feels respected. Therefore employees continue feeling motivated at work.

On a personal level, I recently had a friend leave her current workplace due to feeling undervalued and not being payed enough. She had worked at the company for several years without any increase in pay as compared to others. At the same time, looking into recent posting the wage being provided to workers was lower than the market. For these reasons she decreased her effort and work and eventually left the company. I believe that the company could have combatted this issue if they had open communication as explained in the article. Most individuals will feel valued and can understand if policies and pay reasons are disclosed. Overall, my friend left the company due to feeling undervalued with low wages.

Citation:

“Most People Have No Idea Whether They’re Paid Fairly.” Harvard Business Review, vol. 93, no. 12, Dec. 2015, pp. 1–3. EBSCOhost, search.ebscohost.com.ezproxy.proxy.library.oregonstate.edu/login.aspx?direct=true&db=buh&AN=111099004&site=ehost-live.

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