Exploring Wage Analysis as a Possible Solution for
POOR QUALITY EMPLOYEES
When employees feel like they are not being paid a fair wage, it can often lead to poor work quality. Not only can low wages have devastating effects on the morale of the company's workforce as a whole, but it can also lead to feelings of anger, stress and resentment. Finding the right salary range for the type of work being completed through a wage analysis is often one of the best ways to attract top talent and eliminate poor quality employees. A competitive salary package improves the ability to source new talent and ensure that existing employees are working towards organizational goals to justify the salary they are receiving.
Anytime employees feel like they should be earning more money than they currently are, they will often exhibit a range of signs that are meant to convey their dissatisfaction. For some employees, this could be anger. At the same time, others may not care as much about the quality of the work they are performing daily. Instead of directing anger towards the benefits and compensation specialists that have defined their current salary, these feelings are most often directed towards managers with higher wages or leadership, especially when they are perceived as the organization's highest earners. If a business is trying to determine how to reduce poor quality among employees, a wage analysis may be the best first step.
How Does Wage Analysis Improve Employee Quality?
Employee productivity has been a cornerstone of corporations, both large and small. According to a Workplace Research Foundation study, a single 10% increase in employee investments can increase profits by around $2,400 annually. Although just one example, this research shows promising results that performing a wage analysis and implementing new benefits or employee salary packages could also be the first step in eliminating poor quality employees. However, these are not the only benefits of using wage analysis as a possible solution for poor quality employees.
One other notable example of how a wage increase can directly correlate with productivity and employee quality can be seen in an Amazon case study. Amazon recently decided to raise their minimum wage to $15 per hour for all workers – a step that many business leaders thought would signal the start of job losses. Although, wage increases for Amazon employees increased productivity for two key reasons. First, paying wages above the market rate creates motivation among current employees because they have more to lose. Second, employees are more motivated to do high-quality work to remain employed with the organization.
When working together harmoniously, increased wages is undoubtedly one of the easiest ways to improve morale and eliminate poor quality employees. Essentially, employees will begin to reciprocate by putting more effort into the jobs they are completing. This helps them “pay back" the wage increase that they received. However, determining that sweet spot can only be done through a competitive wage analysis that looks at industry-wide salary estimates, in detail, down to the local the level. Knowing the information can help simplify the process and ensure the best outcome to eliminate poor quality employees