Comment by AdrianB1

Compensation can be the issue if the cost of living is creating problems. If you need 150k to just live in an area, 160k is not motivating while 250k gives you the peace of mind to focus on the work, not just on surviving. If you live in Bangladesh, the difference between 160k and 250k is almost meaningless.

Also compensation is a sign of respect and influences motivation. If you position yourself lower in the market, there is no reason to deliver top results for less money, correct? This attracts mediocrity, especially in management, and slowly kills companies. Usually there is no way back, no large company can replace the entire management and once and the mediocre ones will reject new, better ones.