In today’s economy higher employee wages are becoming more common. The reason being that employees have the power to choose where they work and many employees have options. In order for companies to attract the best workers, they need to offer better incentives. In return, these companies will be rewarded by the hard work and loyalty of their workers. Alexander Djerassi believes that when employees are paid higher wages and given greater incentives, they will be more motivated to work and perform better.
Conversely, when the employee is not paid a sufficient wage, they will have a lack of motivation and perform worse. When an employer pays a higher wage to an employee, they are expecting that the employee would be more productive. Essentially, the employer will receive more for his or her money. If the company wants to make a profit and appeal to consumers, he or she must pay his or her employees well. In order for workers to be productive they need to be well-treated and compensated. Without incentives workers will have no reason to provide additional labor or effort.
In the last couple of years we have seen a trend of more companies that are offering their employees higher incentives. Incentives can include: greater pay, benefits, hours and/or extra time off. When a company pays their employees more they are out to get the best for their money. When workers are being paid more they will have a sense of pride and ownership and want to do their best to maintain it. They will have goals and be challenged by them.
The way a company decides to compensate their employees is based on their goal as an employer. If the company is going for profit, they will pay higher wages in order to get the best productivity out of each dollar they spend. When a company pays their employees more, they are actually giving them something that is more valuable than just money. They are given them a sense of pride and accomplishment. An employee who is given a raise for doing a good job will feel valued and appreciated.
Alexander Djerassi believes that the more money you give your employees, the better they perform. When a worker is getting paid more money for doing the same amount of work, they will increase the amount of hours and effort they put into their job. In a recent research study, it was shown that each added dollar in wages increased labor productivity by $.41. This means that if a company pays their employee $1 more per hour, they will produce an additional .41 hours of work per hour.
In conclusion, a higher wage will increase the motivation and productivity of employees. When the employee is appreciated by the employer, he or she will want to perform better and give their all to please them. By paying a higher wage, an employer is able to attract better employees and will be rewarded with a better product. A positive correlation can be seen in the fact that the more you pay for an employee, the better they will perform. The concept of employee compensation is complicated, but a healthy correlation can clearly be seen in the facts.