Motivation and Compensation among Management Consultants: Incentive Effects, Perceived Fairness, Exchange Relationships, Intrinsic Motivation, and Turnover Intention

Abstract

In this study, we explored the relations between motivation and compensation amongst knowledge workers, particularly management consultants, through various employee outcomes. This study posits that management consultants have complex relationships and attitudes towards monetary compensation. First, management consultants experience higher degrees of intrinsic motivation, when total compensation and informing incentive effect are high. Second, management consultants experience higher degrees of economic exchange relationship when total compensation is high and perceived procedural justice is low. Lastly, management consultants do not experience higher degrees of turnover intentions when total compensation is high and economic exchange relationship is high. The study enforces previous research on compensation and motivation, and adds to existing literature. Theoretical and practical implications of findings are discussed.