Compensation, all the rewards an employee receives as payment for their work for an organization (Unit 5 Lecture Notes Compensation Management and Employee Management , n.d.), is a significant component of employment-both for employers and employees alike. There are three elements to an organization’s compensation system: direct, indirect and non-financial. Direct compensation is the hourly wage or salary an employee receives in addition to performance and/or merit bonuses (Compensation & Benefits, n.d.). Indirect compensation, or benefits, are those additional rewards offered to employees such as insurance, retirement plans, and paid sick/vacation leave (Compensation & Benefits, n.d.). Non-financial compensation involves the environment and
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While money is important, it is not the greatest motivator for employees (Motivation in Today 's Workplace: The Link to Performance, 2010). The actual work an individual is doing can be the greatest motivator. If an employee believes in the objectives of the organization, understands how their role fits into that scheme, is interested and challenged in their role and is valued and recognized for their performance, they will be more highly motivated than if they were to just receive a large paycheck (Motivation in Today 's Workplace: The Link to Performance, 2010). Managers need to understand that they play a large role in motivating their workforce as well; quality leaders will engage their employees, grant them autonomy to perform their tasks, offer clear communication and guidance and recognize a job well done (Motivation in Today 's Workplace: The Link to Performance, …show more content…
According to Dan Pink, author of Drive, extrinsic motivators can be successful for certain tasks; for a great number of tasks, however, extrinsic motivators can not only be ineffective, but detrimental (TED, 2009). I believe that extrinsic motivation is a finite resource- it can only get you so far. I believe employees will hit a point that if they do not harness intrinsic motivation, their happiness and engagement within their position will diminish. I think this applies in many situations outside of work as well. For example, I aim to graduate Summa Cum Laude in December; this has been my goal since I started with Post. This extrinsic motivator has worked for some time now. However, as the Mods have gone on, I have found my motivation waning. I had to find an intrinsic motivator to take up where the extrinsic one left off- I had to pinpoint the reasons why I, personally, wanted this graduation designation and use that as fuel to get me through my courses. I think this example highlights that extrinsic motivators can work but not in the long run; if you really want to engage yourself or your workforce, you have to be motivated from
While money is important, it is not the greatest motivator for employees (Motivation in Today 's Workplace: The Link to Performance, 2010). The actual work an individual is doing can be the greatest motivator. If an employee believes in the objectives of the organization, understands how their role fits into that scheme, is interested and challenged in their role and is valued and recognized for their performance, they will be more highly motivated than if they were to just receive a large paycheck (Motivation in Today 's Workplace: The Link to Performance, 2010). Managers need to understand that they play a large role in motivating their workforce as well; quality leaders will engage their employees, grant them autonomy to perform their tasks, offer clear communication and guidance and recognize a job well done (Motivation in Today 's Workplace: The Link to Performance, …show more content…
According to Dan Pink, author of Drive, extrinsic motivators can be successful for certain tasks; for a great number of tasks, however, extrinsic motivators can not only be ineffective, but detrimental (TED, 2009). I believe that extrinsic motivation is a finite resource- it can only get you so far. I believe employees will hit a point that if they do not harness intrinsic motivation, their happiness and engagement within their position will diminish. I think this applies in many situations outside of work as well. For example, I aim to graduate Summa Cum Laude in December; this has been my goal since I started with Post. This extrinsic motivator has worked for some time now. However, as the Mods have gone on, I have found my motivation waning. I had to find an intrinsic motivator to take up where the extrinsic one left off- I had to pinpoint the reasons why I, personally, wanted this graduation designation and use that as fuel to get me through my courses. I think this example highlights that extrinsic motivators can work but not in the long run; if you really want to engage yourself or your workforce, you have to be motivated from