Final answer:
Pay can be a motivator for sustained employee effort, as employees who receive better pay are more motivated to work harder and stay with their employer. However, research shows that pay level has a weak correlation with job satisfaction. In government or public-sector jobs with rigid pay structures based on seniority, pay may not be as effective in motivating employee effort.
Step-by-step explanation:
Efficiency wage theory argues that workers' productivity depends on their pay, and employers often find it worthwhile to pay their employees more than market conditions dictate. This is because employees who receive better pay than others are more motivated to work harder and stay with their current employer. Research has shown that pay level has only a weak correlation with job satisfaction, suggesting that individuals adjust to higher pay levels over time. In government or public-sector jobs where pay is typically established in rigid grids and employees are rewarded based on seniority, this pay strategy may not be as effective in motivating employee effort compared to other motivational factors.