What Pay Means to Employees

Pay is meaningful to the employees in four dimensions: 146-47). They are:
1) Salient motives-pay is meaningful because the employee expects that it will allow him or her to satisfy important motives and to reach relevant goals;

(2) Relative position-pay provides feedback on how the employee’s task performance is progressing with respect to the goals or targets set and about the employee’s effectiveness in comparison with others in the organization;

3) Control- pay is meaningful because it signifies to the employees the extent to which she or he has been successful in influencing others during task performance in order to reach his/her goals;

4) Spending-pay is meaning because it reflects the products and services that the employee can afford to purchase, thus it is perceived in terms of individual welfare.

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