Independent studies of international experts have shown that the level of wages can have a significant effect on the employee’s internal motivation. First, when wages represent the bulk of wages (as is usually in case with auditors), employees are more confident, unlike representatives of those professions, where commission charges represent a significant part of the remuneration. Accordingly, a sense of confidence and stability positively affects internal motivation.
A high salary, which usually reflects the previous performance of the auditor at the post, as well as his/her level of education and skills, signal the employee that the company is highly valued. This is confirmed by numerous studies. As a result, auditors tend to feel more committed to their organization.
However, in some cases, the salary is perceived by employees as a controlling factor, because in fact it is a reward for properly performed work, and not for high-quality results. In addition, when remuneration is guaranteed prior to performing certain tasks (as in the case of wages), such remuneration is perceived as controlling. This is an undesirable situation for the employer, since such a perception of salary by the auditor may have a negative effect on his/her internal motivation.
The good news is that there are well-known mechanisms for managing wage perceptions by the worker. The perceiving of salary as a controlling factor or the information about the value, which an auditor is for an organization, depends on the level of differentiation of earnings between employees. The more equal distribution of wages between auditors, the more negative is the reaction of employees with high internal motivation. They feel that their competencies are not appreciated in the company and, accordingly, they become less motivated.
Consequently, the management of internal audit and audit firms should have differentiated approach to the establishment of salaries for auditors. It is necessary to take into account as much as possible the level of education, skills, efficiency of work of a particular employee. In addition, it is equally important to bring principles of wage to the attention of auditors and explain that the size of their salaries tomorrow depends on the individual competencies and the efforts they put in their work today. This approach will enhance both the external and internal motivation of employees, and the company will receive maximum efficiency and loyalty from its employees.