The Uncertain Importance of Pay

Abstract

The importance of pay to employees has been a controversial topic among compensation professionals for at least the past 40 years. It has received considerable attention from the best minds in academia and from respected HR consulting firms. In recent years, consultants’ survey research studies have contributed substantially to defining pay’s role in attracting, retaining and engaging certain employees. In some cases, their findings have contradicted the beliefs of scholars, which are rooted in the distant past. Further study is needed to establish the best method for learning how important pay is to employees and to determine the effect pay has on their motivation to work.