Business Commons^™

Why Employees Accept Lower Pay At Mission-Oriented Companies, Insiya Hussain, Marko Pitesa, Stefan Thau, Michael Schaerer

Research Collection Lee Kong Chian School Of Business

Today’s companies are likely to tout how their work benefits human welfare or “makes the world a better place.” Recent research suggests that this may come with a potential financial drawback for workers, as it can inhibit them from negotiating for higher pay. Over five studies, job candidates consistently reported that they worried asking for higher pay from these companies would be seen as greedy or inappropriate. This suggests they are aware of a common bias, known as motivation purity bias, where managers believe employees interested in material rewards of work (such as pay) are less motivated than those motivated …

Compensation, Megan Paul

Umbrella Summaries

What is compensation?

For the purposes of this review, compensation is defined in two primary ways: a) pay and b) pay satisfaction. Pay refers to “the amount of money an individual receives for their job” (Rubenstein et al., 2017, p. 6). It is sometimes measured as the exact amount or in terms of pay levels (Judge et al., 2010). Pay satisfaction is about an employee’s feelings about their pay, either in general or in terms of more specific aspects. Depending on how it is measured, pay satisfaction often also includes feelings about benefits, which might be more appropriately called compensation …