Pay is not the only factor driving job satisfaction. However, it does motivate people, and companies often underestimate its importance. Approximately 60 percent of respondents to an American Psychological Association survey indicated that they were staying with their current employer because of the pay and benefits.

Other important factors were enjoyment of one’s work and the job fitting well with other areas of an employee’s life. Given that pay is so important, will the organization lead, match, or lag the market in pay? How will individual contributions be recognized?