According to various scholars, it has been identified that compensation plays a role in affecting the behaviors of employees. The impact can be either positive or negative. Contributing factors can range from the employer, the employee, the goals/objectives, perceptions, attributions, and behaviors. Each plays a role in determining the outcome.

identify and address the pros and cons of compensation and its effect on employee behaviors, and then address the questions below.

What motivates employees?
Does compensation motivate behavior?
What are some elements of motivation?
Can compensation attract and retain employees?
What behaviors should compensation reinforce?