I selected ‘Employee Pay is Low Practice’ to evaluate. I think that there are many factors
that can contribute to a company executing this practice. Recently, the pandemic brought
to light the concerns regarding low paying jobs. People in the service industry was hit
hard. The phrase ‘Essential Worker’ took on a whole new meaning. We all discovered just
how important these people are to maintaining our healthy society.
However, one factor that can cause low wages is that some small businesses might not be
financially equipped to pay their employees higher salaries. If their profit margin is low,
paying low wages is a given.
Low pay can be directly attached to some employees experiencing low morale. This fact
could lead to negative repercussions. You have some employees who associate their pay
grade with their ‘Work-Worthiness.’ These employees could end up feeling as if they are
not relevant to the company and therefore might have the tendency to feel less than
motivated to do an exceptional job.
If a higher pay was offered, I think that the degree of motivation would be elevated.
Companies should never fail to invest in their employees. As stated in Soomo Learning,
investing in the employees makes the company more attractive to top talents who might be
seeking employment. Word of mouth is the best marketing strategy. If the word gets out
that a certain company is paying a decent salary, others will take notice.
The benefits of paying employees higher salaries could results in more satisfied
employees. They will feel better about themselves and that will probably prompt them to
feel better about their jobs which could lead to each employee becoming more productive.
Paying a higher salary will create an atmosphere that would be conducive to productivity.
Profit along with satisfied employees will make a huge positive difference every time!
That’s a winning combination.
Reference:
bizfluent.com/info-8203577-can-wages-affect-employees-organization.html
Soomo Learning (2020). People, Planet, and profit – https://www.webtext.co
7 Reasons You Should Pay Your Employees Above-Average Salaries | Inc.com
