CHAPTER 4

Compensation

When dealing with employee compensation in any organization, it is important to understand its role and limitations. Contrary to what many believe, compensation is not typically a sustainable source of motivation. While many qualified compensation experts have opinions on the role compensation plays in motivating workers, we have found that increases in compensation often boost employee motivation or engagement, but the effects are usually temporary.

Philosophy

Based on many studies of employee behavior and motivation, compensation is best thought of like the ante in a game of poker—it’s the cost to be in the game. For employees, this means that when the appropriate level of compensation (from the employee’s perspective) ...

Get Forging Dynasty Businesses now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.