While it may be true, the approaches used in achieving an effective and competent staff are what differ from one business to another. One of the questions that have kept appearing among most of the researchers concerns the real worth that can be attached to business executives. Are the top managers and other CEOs justified by receiving millions of dollars at the end of their month on their paycheck? If that can be the case, can their salaries be justified from the work that they do? These among other questions formed the centers of discussion whenever employee compensation is mentioned.
While some businesses often use money as a means of motivating their staff towards better performance, others often prefer using other non-monetary forms of incentives to achieve same; this has led to a huge controversy concerning executive compensation pay. Inasmuch as business executives have continued to be the beneficiaries of huge pays from their companies, some people have been outraged by this observation, making them make inquiries about whether it is a wise move by multinationals and other corporations. The is that large businesses often have a diversity of work activities to be done in many of their business branches; in this case, they often require a top management that understands the business and the industry in general. With an increase in the number of businesses competing for the same market share, businesses are left with few options as attractive strategies for encouraging highly skilled staff to join their companies and business organizations.
Therefore, the business that offers pay compensation that exceeds others in the same industry often end up the most effective and competent workers.
According to research, some businesses end up creating success by offering high pays for their workers, but this strategy has been criticized for lacking a long-term effect on the performance of staff including business executives. According to Ferracone (2010), offering non-monetary rewards can also be an effective approach towards staff motivation.
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