When employees are able to make contributions on the job which make sense to each of them, then compensation becomes a straightforward matter of fair play.
Experience Matters: CX Tip 7 - Motivate employees with intrinsic rewards, 2013-Sep-25 by Bruce Temkin
Companies often try and force employees into doing things by slapping on metrics and measurements. While these types of extrinsic rewards can change some behaviors, they can often cause conflicts and lead to unexpected consequences. When Staples put in place a goal for $200 of add-ons per computer sold, some store employees stopped selling computers to customers who didn’t want to purchase add-ons. Compare this outcome to inspirational coaching at Sprint, which leads to an environment where employees consistently excel and measure their performance against their best effort and compete with themselves to be their best. It turns out that people tend to be more motivated by intrinsic rewards. To build commitment from employees, stop relying so heavily on extrinsic rewards and focus on providing them with the four key intrinsic rewards: sense of meaningfulness, choice, competence, and progress. These types of rewards build an emotional, instead of a transactional, commitment from employees.