1. Employee compensation includes only salary or pay received.
2. Paying people more when they contribute more increases motivation, which in turn leads to high performance.
3. Good benefits contribute to increased employee retention.
4. People who work a moderate amount of overtime on a regular basis are likely to be less satisfied and are more likely to quit.
5. A systematic approach to compensation where Human Resource professionals make pay decisions is likely to result in greater perception among employees that they are paid fairly.
6. Organizations with an internal labor orientation are willing to accept low retention rates because high levels of turnover create advancement and promotion opportunities for current employees.
7. Organizations with an internal labor orientation are likely to have much less secrecy about pay practices, such as how much people make.
8. An organization pursuing a cost strategy is likely to adopt compensation practices that reduce labor costs.
9. Organizations with a uniform transactional compensation strategy use compensation to differentiate high and low performers.
10. Organizations with a uniform relational compensation strategy seek to reduce labor expenses, encourage average rather than outstanding performance and create a setting where high and low performers are treated similarly.