Compensation can be defined as receiving or eligible for compensation this can be in the form of money or any kind of contributions. For employees to maintain the confidence in the job, they need to be compensated; this will allow companies expand their outputs and also plans to low-paid employees. Studies have revealed that highly compensated employees work extra hard. This is because less compensated employees are not able to save for their retirement. Therefore, an employee will always work hard knowing that he has a income at the end of his or her hard work. Thus, it has pretty difficult to understand without compensation (Bruns, 1992, p. 5).
However, working without compensation means that individuals or employees will be demoralized to work; this will always happen to a negative attitude towards work thus reducing the work out put in a company. In addition, people do volunteer for compensation due to some external forces, for example, one does not need to be idle therefore he or she volunteers. On the other hand, by volunteering, one may establish his or her name in the company leading to employment; in this principle one may volunteer just to use it as a stepping stone to perform his or her purpose in life. In addition, there are some well wishers just in the developed country such as USA who appreciate the needs of other, for example, they believe in helping the elderly in the society having hopes that they will be paid for their good deeds by the creator (God). This is as a result of belief in the society (Bruns, 1992, p. 35).
In human life, one starts living satisfying his or her own needs; this is what some books puts it as Ego centrism, but as he or she grow tired, he or she gets to know that they are extremely valuable in the whole community so, they tend to grow help to the entire community and society at large. Hence people see the necessity of volunteering to the old and need. This is because they try to anticipate themselves when they will get older they will probably need the same service from people.
Last but not least, any form of incentive can influence an employee provided that he or she weigh not guarantee the incentive at the begging of his work; this implies that it has only the employer who should know when and what to do to the employee. This can only done when the employee does a good job, now the incentives are given to make the employer to keep him or her going the right things in job therefore, increasing the output of a unit employee (Heneman, 2001, p. 44).
In conclusion, any form of incentive is good for a worker since he or she was given the chance to choose. However, studies reveal that many employees value to be given money than any form of incentive. This has been propelled by the fact that money can be used to solve many of the employee's problems. For example, an employ who is working for this basic needs such as food, when he or she is given a car as an incentive, probably he or she will sell it for him, or her to cater for the basic needs. Therefore, as much as the incentive is good for an employee, people should also volunteer to the community or society since not only incentive can make employees work (Heneman, 2001, p. 22).