Final answer:
It is true that pay is not always the most important factor for employees; working conditions, job security, and a positive working environment also play crucial roles in employee satisfaction. The implications of both implicit contracts and efficiency wage theory suggest that stability and fair treatment can be just as valuable as high wages to an employee.
Step-by-step explanation:
The statement that pay is not always more important than working conditions to employees is True. Employees value various aspects of their job, including pay, working conditions, job security, and the nature of the work itself. While an implicit contract between employer and employee might govern expectations around wages, especially during economic fluctuations, it also highlights the importance of job security and stable income over merely high wages.
Working conditions are a significant factor, as historical data reveals that workers have often endured long hours and low wages, and fought to secure the right to unionize for better working conditions and advocacy for their rights and safety. Moreover, in modern employment, employee satisfaction is influenced by many factors, like the relation with coworkers and safety conditions, not just the pay scale.
The efficiency wage theory argues that higher pay can lead to higher productivity as it assures employees of a safety net, making them less likely to leave and more motivated to work diligently. This theory assumes that the cost and time associated with hiring and training new employees are minimized by maintaining a satisfied workforce through fair wages and good working conditions.