Managers should keep in mind that employees often have a range of choices when it comes to responding to a wage increase.
When thinking about the consequences of pay decisions, managers should keep in mind that employees often have a range of choices in how they respond to a wage increase. These choices can include working more hours to earn more income, taking more leisure time, or finding a balance between the two. It is important for managers to understand that each employee's response may be different and cannot be assumed.