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Herzberg’s two-factor theory speaks to issues relevant in both employee compensation and benefits as it discusses why people choose a workplace, as well as what keeps employees satisfied and committed to their work. For more information on Herzberg’s two-factor theory, see the Frederick Herzberg motivational theory (Links to an external site.)Links to an external site..

Imagine that you are an HR manager in a contemporary firm and answer the following:

  • Who are you trying to recruit to work for you (i.e., your audience)?
  • What sort of compensation and benefits package would you ensure is in place to recruit the best candidates for the position?

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