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142 Some employers reward members of staff for their exceptional contribution to the company by giving them extra money. This practice can act as an incentive for some but may also have a negative impact on others. To what extent is this style of management effective? Are there better ways of encouraging employee to work hard? Nowadays, the compensation system has a vital rules role in all of entities enterprises that want to enhance the efficiency of their workers/staff/workforce/personnel. Employers prefer to pay on based on performance of employees. by contrast, most of the employees are looking for a fair or fixed payments system. The critical question is how the companies can set the compensation system with the more motivate motivating effects on workers. Employees prefer a payment method with stable formula without any variations and payment stereotype. So if they find that some employees were prized without any satisfactory reason for them, they will be disaffected. And looking for new opportunity to leave and resign, talent employees and the rest may not be not working efficiently as the same as before. As result, discontent grows immediately in labor and paralyzing paralyzes the company. Although, the employees prefer a stable method, employers are looking for compensation methods with emphasize emphasis on additional payments to staff for their exceptional contribution to the firmfrim. They want to motivate the employees and increase their efficiency. In other words, it is necessary to set up a payment system that in which creative and efficiencies efficient staff are entitled to additional payments. This method encourages employees to enhance their performance and it will be useful not only for the employees but also for companies. In order to avoidAvoiding less negatives impact on staff, employers need to describe the payment methods for employees and set off criteria for them that show how they will been entitled for additional payments. In this instance, more than 50 percentage of annual salary salaries in marketing companies are related to their sales numbersamounts. This target will be determinedselect in annual budgets and will encourage employees to work harder. To sum up; as I saidstated above, if the employers can describe the payments method for the staff and assign them quotaselect aims for them, they can motivate employees to increase their efficiency and avoiding negative impacts.