While job satisfaction and passion should always be first on the list, an employee’s hard work and dedication should also not be ignored. A company can demand a higher quality of work, consistency, and productivity but for that to happen a good salary should be present.
Two standard human psychology theories from Abraham Maslow and Frank Herzberg state that salary is important in the most basic sense, the vast majority of people wouldn’t do their jobs if they weren’t paid for it. A fair salary for the particular work required is also important.
Aliane Umuliza who works in a design company talks about how companies sometimes never put into consideration how unfairly paying an employee destroys their passion and productivity.
"A lot of companies here in Rwanda tend to give a lot of work to an employee and expect to profit from higher productivity and dedication but they never try to raise the payment. I have seen it a lot where an employee sweats, only for them to earn less of what they did and this discourages an employee because they start thinking that they are only being used,” she says.
Akaliza Teta a travel enthusiast thinks that productivity at work goes hand in hand with inspiration in monetary form.
"If an employee gets a lower salary compared to the kind of job they are doing, there are high chances that their delivery will be poor because they lack the incentive or drive to perform at their maximum and that eventually leads to low profitability,” she says.
Alain Ntwari who works in a shipping company, believes that a salary is an important asset in one’s life and when it is unfairly handed to an employee it causes a lot of problems.
"Not only does an employee starts delivering poorly and lacking productivity but also they start hating the job it doesn’t matter if it is their dream job or career but the moment they start being paid poorly they feel like they are not important in the organization. They als feel like their work goes unseen and therefore they start hating the job,” he says.
Why a fair salary is important
"Money is not the only thing that motivates an individual to perform well or be productive but it heavily also plays a role in the motivation an employee has, they cannot be paid less than what they work for and be happy or even motivated they will just feel used,” says Arlene Isimbi who works in a clothing design company.
According to Matchr, in their article on why a competitive salary should be paid to employees they provided some reasons why:
Low salaries don’t save money
A major cause of employee turnover is salary. If employees feel that they aren’t getting paid enough and are able to find higher-paid work elsewhere, they’ll quit and move on. Employee turnover costs companies huge amounts of money.
Low salaries mean low productivity
There are several ways in which low salaries can negatively impact productivity. First, employees who are paid less may also be less invested in their jobs and in the company. Secondly, if paying lower salaries is resulting in high turnover, your company will constantly have employees who are training. The longer an employee has been at a job, the more efficient and knowledgeable they will be.
High salaries attract top talent
Talented employees know what they’re worth. If your company isn’t offering a competitive salary, you won’t be able to attract the top talent that your company wants. There are only so many top employees out there. If your company isn’t willing to offer these stellar candidates what they’re worth, then your competition will.
Higher salaries improve employee health
Employees that make lower wages, especially those at minimum wage, can struggle to make ends meet. This can have a negative effect on health as they’re less able to afford healthy, nutritious food. They may also struggle to afford to go to the doctor regularly and could be ill more often. Having a lower salary can also cause more stress, which can negatively impact both health and work.