Southern New Hampshire University
People, Planet, and Profit
Employee pay is low
QSO-321
I have selected the factor where organization keep the employee pay
low. Now assuming the general practices as the productivity equalizes with
the salary scale organization provides. As usual the company would get the
benefit of keeping the employee with minimum expenditure and highest
return in productivity. Another contribution is that they will have to provide
low salary and they will get the benefits of an employee within margins and
make the profit margins high. Business will prosper and can later on hire
some highly paid top executives for the hierarchy and keep the low scale
employee under them to maintain or increase the performance. So, in terms
of contribution, company will have more profits and low expenditures on
salary scale.
But in terms of keeping the salary package low, organization must keep the
factor in their plans to have low productivity as well. Because, keeping low
salaries would also affect the type of employee company is hiring for the
job. And keeping the scale in mind similar scale of performance would be
hired and performs. Also, when the employee gains experience in working
he will also start feeling low satisfaction from its salary perspective that
would derive his reward to effort ratio low (How compensation affects
employee performance 2022). This would put a dent in the workplace
within the coworkers and their morale. Third and the riskiest factor would
be employee looking outside opportunity to move from the organization
looking for better opportunity and high pay scale. That also is a dangerous
practice for a company to lose their trained resource to another hand. Total
resulting in total wastage of time and money.
On the other hand, if the company keeps the environment friendly and
employees are working in stress free conditions then it would make them
comfortable and they would be more productive in less time. They would
provide unique ideas and implement them within their working hours
because they are enjoying their time being in the company. Google provides
the people friendly environment and they have high pay scales. Being
people friendly as an organization provides the knowledge sharing to
greater extend. It also increases the team spirit and morale of the teams
hence increasing the productivity of the company. Employees are stress free
and they are cooperative to each other and they take care of each other
more than anything else (Carter, 2022). Creates the positive environment
for the employees and if it’s a customer handling organization then it will
affect the community as well. Because if a customer is treated with care and
concern then it will help community to reach satisfactory level.
References
20th, E. D. | A. (2022, March 15). How compensation affects employee
performance. HRSoft. Retrieved January 12, 2023, from
https://hrsoft.com/how-compensation-affects-employee/#:~:text=Low%20p
roductivity%20%E2%80%93%20Poor%20compensation%20induces,away
%20from%20their%20current%20job.
Carter, S. S. (2022, October 12). Author post: The impact of wages on
employee productivity. Forbes. Retrieved January 12, 2023, from
