Pay Employees What They Deserve

Recognize Their Value Beyond Roles: You are paying for the experience not just their role!

Every business will not thrive but it’s always in the hands of the business owners and managers to treat their people right and set the right processes for employment. Roles are not to be just filled; it’s about understanding and recognizing what each individual brings to the table. Employees whether successful or unsuccessful in their past roles all are presented with a unique blend of skills, experiences, and knowledge accumulated over years of study and practice. Hence, it's crucial to acknowledge this wealth of expertise when determining fair compensation.

I enjoy drawing parallels between business and sports. In this context, when a player, whether underperforming or overperforming, transitions to a new team, there's inevitably a period of adjustment. However, the key to their success in their new role isn't solely defined by this learning curve. Rather, it hinges on how effectively they're utilized within the team and whether they contribute positively. Success is subjective and can differ from one team to another, meaning that the player's impact in their previous team may not necessarily mirror their influence in the new environment. For example, in cricket if a batter moves teams and is valued better in the new team, he will perform better hence he is considered successful.

This is practically the same for business and your employees, they could have been successful in their past and that does not determine they will be successful in the role in your company, but it is all based on how you treat them and how you handle them. As a matter of fact, when they do join; getting paid for their role and efforts is also one of their greatest concerns as any employee. So, choose your employees wisely and make sure to appreciate and give them the right benefits and package for them to be motivated and be successful at their work. They shouldn’t be working out of desperation for a job.

You're not merely paying for their job title or daily tasks but you're investing in their accumulated wisdom and learning. Whether they've spent years perfecting their craft or their dedicated time in formal education, their value extends way beyond to what their job description confines them to (getting someone over experienced; will not allow for a long-term engagement because they will surely be looking elsewhere to get what they deserve). Paying employees what they deserve means acknowledging and remunerating this wealth of experience appropriately.

As my dad always says: “If you pay peanuts, you will only attract monkeys”

Unfortunately, in recent times, many companies have resorted to exploiting their workforce, reasoning it with economic challenges or that they are a startup as a justification for low wages. This practice shows your inferiority as a business and shows that you do not have faith in your own business as an entrepreneur and undermines employees morale along with it. Fair compensation is not just a matter of meeting the bare minimum but rather ensuring that employees are adequately rewarded for their contributions. It also promotes and fosters a long-term vison to work with the company when they feel valued in the organization.

Imagine a scenario where a seasoned professional with a decade of experience is paid the same as an entry-level employee. Such disparity fails to acknowledge the expertise and dedication that the former brings to the table. By undervaluing experienced employees, companies risk losing out on the insights and innovation they can offer. This is not a phenomenon that founders and CEOs are unaware of, but they just tend to take advantage of situations to try benefit their company. The point I am trying to make is that: this can backfire very quickly and spiral them to shutting down without the right workforce.

Paying employees the bare minimum can inadvertently lead to a lack of motivation and engagement in their work. When individuals feel undervalued and undercompensated, they may become disengaged, leading to a decline in productivity and quality of work. Equally, when employees are valued and fairly compensated for their efforts, they are more likely to feel invested in the success of the company. This sense of value fosters a strong commitment to their work, resulting in increased dedication and a willingness to go above and beyond to contribute more for the organization. In essence, recognizing the worth of employees not only promotes a healthier work environment but also cultivates a culture of excellence where individuals are motivated to give their best each day.

On the contrary, if a company seeks to hire employees at low wages, they may find themselves sacrificing quality in their workforce. When workers are not adequately compensated for their skills and efforts, they may lack the motivation and morale needed to excel in their roles. Consequently, this can result in subpar work output and ultimately hinder the company's ability to achieve its goals. By prioritizing cost-cutting measures over fair compensation, businesses risk undermining their own success and productivity in the long run. It's essential to recognize that investing in employees is an investment in the company's future growth.

In essence, paying employees what they deserve is not just a matter of ethics; it's a smart business decision. By recognizing the full extent of each employee's worth and compensating them accordingly, companies can foster a more inclusive and productive work environment. It's time to move beyond mere job titles and acknowledge the true value that each individual brings to the table. After all, investing in your employees is an investment in the future success of your company. If you are in business and you are starting up, please don’t use that as an excuse to pay lower salaries. You wouldn’t want to invest less in your product or service so why would you not invest what’s right for your employees too?