Compensation is a controversial workplace topic. Throughout the years, specifically the past decade, average employee wages have not greatly risen. However, managerial and executive pay has steadily increased. Despite current economic stability and low unemployment rates, U.S. businesses are constrained from raising employee salary and benefits due to low-wage foreign competition.  This week’s readings showcase a case study on pay compression at Envelop City and on how McDonalds uses praise (intrinsic factor) and individual incentive pay (extrinsic factor) to ensure satisfied and happy employees. Discuss how an organization can motivate its employees to maintain/increase their productivity and performance without significantly increasing employees’ compensation.  Additionally, as a compensation consultant, how would you develop market value for positions within your organization? Propose a compensation plan to ensure that rewards (i.e., wages, benefits, and other compensation) match job duties, tasks, and responsibilities.

Answer the above using the question and answer (Q&A) format.  The Q&A format should include the original question along with your response. Within your post, support your responses with information from at least 2-3 peer-reviewed/scholarly source (not older than 3-5 years) and provide the full citation at the end of your post. Use APA guidelines. Blogs/Wiki/news articles as sources nor allowed.

Chapters 10, 11, 12, and 13 in Cases in Human Resource Management

Christ, M. H., Emett, S. A., Tayler, W. B., & Wood, D. A. (2016). Compensation or feedback: Motivating performance in multidimensional tasks. Accounting, Organizations and Society, 50, 27-40.

Sudiardhita, K. I. R., Mukhtar, S., Hartono, B., Herlita, S., Tuty, S., & Nikensari, S. (2018). The effect of compensation, motivation of employee and work satisfaction to employee performance PT. Bank XYZ (Persero) TBK. Academy of Strategic Management Journal, 17(4), 1-14.

Bersin, J. (2018, Dec. 31). The economy and wages in 2019: What HR can do to help. LinkedIn. Retrieved from

Rieley, M. (2018) In the money: Occupational projections for the financial industry. Beyond the Numbers. Employments & Unemployment, 7(16). Retrieved from
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