The article discusses about an important issue of HRM (Human Resource Management) in-which salary plays an important issue for many Management Gurus.
Here, the point of discussion is the difference between realistic and competitive salaries.
Provide realistic and competitive salaries
Jeffrey Pfeffer (1998), in his work, 'Six Dangerous Myths About Pay' has immensely warned about public discussion and conventional wisdom, subjecting pay today, is considered to be incorrect, misleading or both. This has resulted in business people’s misconceptions about way of paying their employees and the reason behind it. While discussing the 6th myth, he mentioned that ‘money’ sits in the front seat when talking about ‘why people work’? The reality is, besides money, people work in their lives for many other reasons. People work for fun.
According to Messmer, if a firm underpays their staff, it indicates that the firm does not value their work. According to Richter, many companies, after their regular investigations about the reason for their employee turnover conclude that usually lesser pay is the reason for the dissatisfaction, the noted facts as revealed by the Accel-Team.com’s writers are money is never the crucial motivator, nor it should be considered as the ‘bait’ for the employees in any manner, unfairly or poorly. Theory of motivation by Herzberg informs that pay & benefits are such hygiene factors that by effectively applying these factors, dissatisfaction of employees can be prevented in a best way; however if it is poorly applied, it can bring forth workers’ negative feelings towards the job.
The pay strategies of the employees should be in conformity with the prevailing industry standard, in addition, it should be robust and simple to be operative, controlled & explained. It must also be able to address to the specific needs of the employees, (be it difficult or easy), while remaining related to individual or team performance.
According to Messmer, simple ‘thank you’ has a lasting impact on the employee-psyche. When the employees come to know you are appreciating and recognising their contributions, they will be extra motivated and put their hard work. The survey by Messmer concludes that employees view ‘thank you’ as their most wanted form of recognition, which may be added with a handwritten note from the superiors.
Rewards may be both, team based or individual based and can be thank you cards, movie tickets, award ceremonies, parking space, holidays, a company newsletter with the mention of the achievement, cash bonuses and so. According to Smith, rewards are not necessarily to be cost-effective matter, in the context of employee motivation. He furthers to say that to be successful, employees are needed to be energised by the motivator. Activity, which is rewarding / enjoyable for the employees, is the best way to do this.
While commenting on the key to motivation, Lindner has highlighted the importance of individual consideration of staff, and viewed that designing an employee-motivation program that should fundamentally address to their needs should be in place. Employees, in their part should also let their managers know about their motivating factors, while managers must have willingness of designing the reward system that can rightly motivate employees.
Continued to Part-2