Human Resources Certification Institute (HRCI) Practice Exam

Employee behavior regarding wages is affected by what?

1. If they can live comfortably on their base wages

2. If they are making more in their current jobs than they could working for competitors

3. The perception of what was earned versus what was discretionary

4. The perception that they are paid what they are worth

The correct answer is: The perception of what was earned versus what was discretionary

The chosen response highlights the significant role that perception plays in shaping employee behavior towards wages. Employees often compare what they earn to what they believe they are entitled to based on their skills, efforts, and contributions. When employees perceive a discrepancy between what they feel they should earn and what they are actually compensated, it can lead to dissatisfaction, decreased motivation, or even disengagement from their work. This perception is influenced by various factors, such as market standards, individual performance milestones, and internal company practices. By focusing on the notion of earned versus discretionary factors, this option underscores the psychological elements that drive compensation-related behavior. Employees may consider not only their base salary but also bonuses, incentives, and non-monetary benefits when evaluating their overall compensation. If they believe they have earned their pay, they are likely to be more satisfied and engaged in their roles. The other options, while relevant to employee perceptions about wages, do not encapsulate the broader psychological aspect as effectively. Living comfortably on base wages relates more to individual financial circumstances without necessarily engaging the perceptual comparison. Making more compared to competitors touches on external comparisons but does not address internal beliefs about worth. The perception of being paid what one is worth touches on relevant concepts but does not specifically encapsulate the