In some cases YES … In most cases NO. The idea that productivity will increase if you increase the minimum wage is ludicrous and I am not saying that you shouldn’t pay people fairly. You should pay people more than fairly for what they do, but why pay them for something they don’t do or are you suggesting a communist or socialist ideal?
So we need to do Smart Business and that means that each persons contribution should be measurable and they should be paid for what they actually do and not just paid because they were supposed to do something – which in many cases is the norm. Surveys from large consulting companies show that the average person is only 40 percent productive.
In most cases the justification is because some fat cat is earning a big salary – well that idea that people just earn money for doing very little is also changing rapidly and most of the studies I have mentioned are being applied to the top of the ladders first, as some studies have found that it costs a lot more than we seem to think to keep a top executive.
What is the Real Solution?
- LEADERS : We have established that most people are only 40 percent productive and this is mainly due to a lack of leadership or a leadership style that is self serving (serving themselves not the people). The leaders task is to look after the people by protecting them and having their best interests at heart, so that they can be as productive as possible (let’s say 90 percent at least).
- PRODUCTIVITY : Employees need to realise that when they are more productive, the companies they work for will be more productive, make more money and be able to pay more money. However let’s be realistic in most corporate environments only 2 in 10 people actually do what is expected of them. Managers are sometimes the cause of this as they tend to micro-manage (they want it don’t their way and not the best way – it’s a case of it’s always been done like that and that’s the way it needs to be done. Thus eliminating all innovation, creativity and job satisfaction.
- PAY : Get paid for what you actually do, not what you supposed to do. Everyone needs to start thinking like an entrepreneur (entrepreneurs only get paid for what they do, and more importantly they only get paid for solving problems). When you are the person or the team that provides the solution they need you and they pay you to make sure the job consistently gets done, and they pay you well because they would not make the money they do without you.
- JOB CREATION : Minimum wage ideas only mean less jobs, more entrepreneurs mean more jobs and the opportunity to work for something and that is better than nothing. Pay for productivity and rather set conditions for minimum quality standards, minimum deliverables and pay for work done – those who actually want to work will benefit and the lazy – well the lazy will always be lazy. Therefore give equal opportunities for those who wish to work. There is no free lunch and free ride.
Yes everything needs to change, starting with the way we think to the way we think we need to get paid. The main question we should be asking and thinking about is: Why do they pay me so much for what I do? Could I be paid more for doing this somewhere else? Sometimes the opportunities are where the opportunities are and not where we are.
So how are you earning what you earn? Can work harder or smarter? Can you add to the profit of the organisation you work for, or are you just there and feel entitled that they should pay you?
This is my opinion and I welcome your comments …