Which of the following is considered a motivating factor for employees?

Compensation is considered a motivating factor for employees because it directly influences their financial well-being and perceived value within the organization. When employees receive fair and competitive wages, bonuses, or benefits, they are more likely to feel valued and satisfied in their roles. This contributes to higher morale, increased productivity, and a stronger commitment to the organization.

In terms of workplace psychology, compensation serves as a fundamental motivator as it fulfills basic needs as outlined in Maslow's hierarchy of needs, acting as an incentive for individuals to perform well. Moreover, organizations that recognize and reward good performance through appropriate compensation can cultivate a more engaged and motivated workforce.

While punishment, strict supervision, and unrealistic expectations may have short-term effects on compliance or performance, they typically do not foster long-term motivation or job satisfaction. Instead, these approaches can lead to negative feelings, resentment, or burnout among employees, ultimately undermining their effectiveness and morale.