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Pros and cons of compensation

Identify and address the pros and cons of compensation and its effect on employee behaviors

According to various scholars, it has been identified that compensation plays a role in affecting the behaviors of employees. The impact can be either positive or negative. Contributing factors can range from the employer, the employee, the goals/objectives, perceptions, attributions, and behaviors. Each plays a role in determining the outcome.

Identify and address the pros and cons of compensation and its effect on employee behaviors, and then address the questions below.

  • What motivates employees?
  • Does compensation motivate behavior?
  • What are some elements of motivation?
  • Can compensation attract and retain employees?
  • What behaviors should compensation reinforce?

Your essay should be at least two pages in length, including an introduction, a body of supported material, and a conclusion. A minimum of three scholarly references is required for this assignment. Be sure to apply the proper APA format for the content and references provided.

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Answer preview

            In the modern work environment, managers are increasingly applying compensation tactics due to the impact it has on staff members. Most companies are using compensation due to issues such as poor work performance, absenteeism, and high turnover rates. Nonetheless, the effect of rewarding workers on staff behavior can either be positive or negative. Although compensation can be expensive to employers and create aggressive competition among workers, it improves employee motivation, innovation, and retention.(1032 words)