How pay impacts organizational culture

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How pay impacts organizational culture

There's an interesting relationship between pay and culture. Organizations, you as a manager, need to pay a lot of attention to the interface between what people believe the organization stands for, their culture. As a culture, what's accepted. And the pay and rewards system. To some degree, the rewards system influences the culture, and to some degree the culture influences the rewards system. It's not a simple one causes one, one way relationship. It's an interactive relationship.

It is critical that they be in alignment and that they be functional. So, key issue is, "What do we want the culture to be?" as a starting point. Do we want it to be one that values openness? Is it one where we value participation? Do we value people being involved in the business? Do we value long-term employment or long-term relationship with our employees so that they're loyal? Or d0 we look at it more as a transactional relationship? Constant turn of employees, etc. etc.

https://www.linkedin.com/learning/human-resources-pay-strategy/how-pay-impacts-organizational-culture