Is Money the Most Effective Means of Motivating and Keeping Employees Happy?

Subject: Employee Management
Pages: 1
Words: 398
Reading time:
2 min
Study level: Bachelor


Employee’s benefits may include: healthcare insurance, paid leave, voluntary pension plan, and others. When elaborating a detailed business plan, according to SWOT analysis, one should discuss opportunities for employees, which do not necessarily consist of salary (CFD Master, 2013). However, sometimes when employers are not using performance-based pay, employees may face inequality in compensation (Gittleman & Pierce, 2015). When I did a web search concerning examples of benefiting employees, I found out that workers’ motivation can be achieved not only by primary means, such as insurance. People could be kept motivated even by merely updating them about the company’s plans.

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Cases in which Company Provided Benefits

The first example of providing support for workers in a company with positive outcomes lies in the scholarly article. According to Zeb, Sultan, Hussain, Javaid, Abbas, and Imran (2018), employees’ involvement in management can increase a company’s effectiveness. For instance, in the medical research firm in Kenya, “supervisors kept employees updated about the future direction of the organization,” which increased its outcomes (Zeb et al., 2018, p. 100). Another example of an increase in results can be seen in a multinational company of 437 Chinese employees, which was achieved by improving relationships with workers. Here the conclusion over two cases can be drawn: “an employer should build up a relationship with employees which involve personal touch.” (Zen et al., 2018, p. 100). Therefore, a company’s big plans may inspire employees for future work and career advancement; that is why people can be motivated by improving relationships with employers.

Examples of Failed Support of Employees

It was hard to find companies’ failure cases in supporting employees; however, there are examples of industrial inequality. For instance, there was a rise in part-time employment in America from 8.9% to 9.7% during 2004-2015, which appeared in services, trade, and government industries (Krista, Cohen, & Navot, 2020). Interestingly enough, it was benefit inequality that increased more than wage inequality. Another example concerning the state of affairs in the USA, “only 30% of the bottom 10% wage earners have paid sick leave benefits, compared to 93% of the top 10% earners” (Bapuji, Patel, Ertug, & Allen, 2020, p. 1217). This is supported by an American ER nurse’s case, who does not receive a paid sick (Bapuji et al., 2020, p. 1205). Therefore, compensation inequality exists in the USA in services, trade, government industries, and the medical field.


Bapuji, H., Patel, C., Ertug, G., & Allen, D. G. (2020). Corona crisis and inequality: Why management research needs a societal turn. Journal of Management, 46(7), 1205-1222.

CFD Master. (2013). How to write a SWOT analysis report. [Slideshare presentation, 12 slides].

Gittleman, M., & Pierce, B. (2015). Pay for performance and compensation inequality: Evidence from the ECEC. Industrial & Labor Relations Review, 68(1), 28-52.

Kristal T., Cohen Y., & Navot E. (2020). Workplace compensation practices and the rise in benefit inequality. American Sociological Review, 85(2), 271-297.

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Zeb, A., Sultan, F., Hussain, K., Javaid, M., Abbas, Z., & Imran, M. (2018). The influence of compensation and benefits and employees’ involvement on employees’ outcomes-evidence from PTCL. International Journal of Research and Review, 5(11), 98-103.