Entitlement-style pay philosophies motivate employees to perform better over time.

Question

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Entitlement-style pay philosophies typically incentivize employees to perform their best at the beginning of the pay cycle in order to receive their entitled pay. This may result in decreased motivation over time as the employees already know what they will receive regardless of performance. On the other hand, performance-based pay philosophies typically motivate employees to continually improve their performance over time to receive higher pay.

Entitlement-Style Pay Philosophies Motivate Employees to Perform Better Over Time