Money Matters, Study Says

How important is pay to employees? Very important, according to a new study published in the Quarterly Journal of Economics and conducted by the Haas School of Business at the University of California–Berkeley.

The study, which examined how money awarded in abitration proceedings affected the performance of police officers, found that employees work more when they're paid more and less when they're paid less. The primary lesson in this for business owners is that "managing expectations is important," said the study's author Alexandre Has in a U.S. News & World Report article summerizing the findings.

Want to know how to determine if you're paying enough to attract and keep the best employees? Check out our "Pay What?" article in the Upfront section of the current issue of MyBusiness.