Benazir Marjan is intended to use her business knowledge in the practical field through this article.
Impact of Wages on Employee Productivity
The world had been changed with time. Once it was an agricultural based economy. Industrialization started from 18th century in Britain. Then it had been spread over the world. Our 21st century is industry based world; where massive economic growth is happening. There are five factors of industrialization (land, labor, capital, technology and connections). Employees give labor in return of wages which is a crucial concept in industry. Owners always want to exploit the employees. There is always a management conflict between the top level and employees in an organization. The employees deserve the proper earnings according to their level, post and hard works. At the same time owners also want to reduce the cost of company. Keeping in a balanced position, possessors have to determine the proper wages of employees as it influences the productivity as well as all over growth of an industry. Six particular descriptions are given bellow:
1. There is no doubt that distribution of wages in a deserved manner will enhance the quality of the workers. Once they will start getting the proper remuneration, their motivation will boost up which will increase the standard of their work. If the employees are under paid, it decreases the acceleration of their work very naturally. The company is going to suffer in the long run indeed. There is no substitution of quality work in this world. If there is no quality, there will be no expected outcome as well.
2. Employee satisfaction is a very important issue for an organization. Satisfied employees give their best to the company which leads it towards the success. Employee satisfaction depicts about whether the employees are happy and are able to fulfill their desired needs. Employee satisfaction depends on different things. Among them wage is very basic.
3. Often, we heard about the strikes that employees made in an organization. Employees make riots, work stoppage when they feel that they are getting under paid, deprived of deserved benefits and also they may have question of job security in their mind. Every country has their individual labor laws, under that owner cannot exploit human labor and they have to provide all privileges and rights, the employees worthy of. This kind of strikes hampers the flow of works in a company that automatically reduces the production. Sometimes, it becomes very hard for the owner to bring the control again. Therefore, it is always better to ensure the correct fixation of salaries according to country law, so that employees will not think of doing any mass to the company.
4. Experienced workers who are working in a company for a long time are the assets of the company. They are highly productive for the company. If they get better package outside, definitely they will switch. This kind of switch is a great loss for an organization. Thus, the owner needs to be always careful about the market rate of salary for different positions and should provide in according to. In some cases they should provide more than others to hold the employees for long run. This policy will help for the employee retention and employee retention always enhances company’s yield.
5. Disbursement of handsome payment to workers creates good reputation for any company. Due to word to mouth communication, these topics spread easily from person to person. More skilled personnel get interested to work for good salary. Therefore, when it comes the time for any recruitment the required board get chance to hire efficient employees for the company, which is also related to company’s productivity. Qualified workers are more eligible to carry on their responsibility in a perfect way.
6. Impact of wages controls overall organizational growth. There are four stages of growth (startup, growth, maturity, renewal). Human resource is very important for each stage to carry on. Human resource (employees) will only function at their best effort once they will get the acceptable honorarium.
From above discussion it is pretty clear about the impact of wages on employee productivity. Employees are the main asset of an organization. They always try hard to achieve the organizational goals to reach at the desired success. Their contribution is beyond any clarification. Thus, taking care of them by providing excellent remuneration is always required. This is how an organization will move towards the real victory.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2020 Benazir Marjan