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Pay has historically been a major concern for both companies and employees. Pay has a significant impact on the general living: Criminal Justice Dissertation, BU, UK
| University | Bangor University (BU) |
| Subject | Criminal Justice |
Pay has historically been a major concern for both companies and employees. Pay has a significant impact on the general living conditions and status of employees, but compensation is one of the biggest business costs for employers. The growing pay inequality within firms due to fast-rising executive salaries is a hot topic in today’s societal debates, bridging the expectations of employers and employees.
Employees’ expectations for their compensation and their happiness with their pay may be impacted by rising top management pay and distribution discrepancies. Böhm et al. specifically demonstrated that over the past several years, there has been significant growth in the gap between employees’ expected to pay and their actual compensation, to the point that employees’ pay expectations now surpass their provided pay. Such differences in expectations might weaken employees’ commitment to the firm and result in additional negative effects.
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