ESSAY QUESTION:
“Monetary compensation is the most powerful stimulus for improving employee productivity.”
Discuss the extent to which you agree or disagree with the position stated above. Support your viewpoint using reasons and examples from your own experience, observations, or reading.
MY RESPONSE
I disagree with the statement. Monetary compensation is an important temporary stimulus, however, not the most important stimulus. The most important stimulus is the potential for future earnings, not current earnings.
My first reason for this, is that when given a raise, employees eventually become content with their salary and will want more more money. Employees may temporarily work harder when given a raise, however this wears off after a while. The employees will become used to a certain lifestyle, and feel they deserve more. They will work harder for the potential to gain higher future earnings, not simply to keep their current pay.
Secondly, it is the prospect of being promoted that gets employees to work the hardest. When two employees are competing for a position, this is when they work hard. An employee with no competition, will have much less incentive to work hard. A promotion is much more than just monetary. There is added responsibility, perquisites, experiences that the employee can leverage, pride; all of these are included in the promotion that employees compete for.
Additionally, some employees give up large salaries for potential earnings. One example of this is the many CEOs that work for extremely low salaries. They may obtain many stock options, or perquisites; however this is not monetary. Monetary compensation is a guaranteed salary, the stock options are potential earnings. These CEOs will only earn money from these stock options if they do a good job.
Finally, many employees simply work hard to gain experience. An example is unpaid or low paid internships. Students work very hard in these internships simply for the experience or a potential referral. This is not monetary. The employer may never even pay the employee. A friend of mine worked an unpaid summer internship where she worked much harder than she had in paid jobs. With the referral, she may get another internship. These internships will never pay well, however, they will give her better job opportunities, thus, a better chance to make money in her future.
In conclusion, there are many other factors besides monetary compensation. The prospect of a future earnings, not current monetary compensation, can get employees to work the hardest.
__________________
Please let me know what you think. Be brutal in your response!
Thanks!
“Monetary compensation is the most powerful stimulus for improving employee productivity.”
Discuss the extent to which you agree or disagree with the position stated above. Support your viewpoint using reasons and examples from your own experience, observations, or reading.
MY RESPONSE
I disagree with the statement. Monetary compensation is an important temporary stimulus, however, not the most important stimulus. The most important stimulus is the potential for future earnings, not current earnings.
My first reason for this, is that when given a raise, employees eventually become content with their salary and will want more more money. Employees may temporarily work harder when given a raise, however this wears off after a while. The employees will become used to a certain lifestyle, and feel they deserve more. They will work harder for the potential to gain higher future earnings, not simply to keep their current pay.
Secondly, it is the prospect of being promoted that gets employees to work the hardest. When two employees are competing for a position, this is when they work hard. An employee with no competition, will have much less incentive to work hard. A promotion is much more than just monetary. There is added responsibility, perquisites, experiences that the employee can leverage, pride; all of these are included in the promotion that employees compete for.
Additionally, some employees give up large salaries for potential earnings. One example of this is the many CEOs that work for extremely low salaries. They may obtain many stock options, or perquisites; however this is not monetary. Monetary compensation is a guaranteed salary, the stock options are potential earnings. These CEOs will only earn money from these stock options if they do a good job.
Finally, many employees simply work hard to gain experience. An example is unpaid or low paid internships. Students work very hard in these internships simply for the experience or a potential referral. This is not monetary. The employer may never even pay the employee. A friend of mine worked an unpaid summer internship where she worked much harder than she had in paid jobs. With the referral, she may get another internship. These internships will never pay well, however, they will give her better job opportunities, thus, a better chance to make money in her future.
In conclusion, there are many other factors besides monetary compensation. The prospect of a future earnings, not current monetary compensation, can get employees to work the hardest.
__________________
Please let me know what you think. Be brutal in your response!
Thanks!
