You might be thinking, we are in COVID-19, I can’t possibly afford to pay my employees more right now. We get it, times are tough for many businesses right now. However, this won’t last forever and paying for employees more than your competitors is a long term growth strategy that can pay huge dividends.
The art of business is keeping costs as low as possible while generating massive value. But, as the old saying goes, “you need to spend money to make money.” And nowhere was a truer statement ever uttered than in relation to your staff.
Your team is essentially what allows you to grow your business. Without them, you’re dead in the water, regardless of the quality of your product. You need people who are committed to the cause.
That’s why the topic of wages and remuneration is so critical. You don’t just want to pay whatever the market says you should. You want to pay what is in the strategic interests of your firm. And, sometimes, that means upping salaries.
Not all businesses should pay employees above-average wages – that’s a logical impossibility. But some definitely should consider it.
You’ll Improve Your Employee Brand
While most companies fixate on the customer perception of their brands, what employees think is equally important. If you can convince people to come and work for your firm, you can massively increase its value, output, and productivity.
Attracting the right people, however, can be a challenge in a competitive marketplace, which is one of the reasons why so many firms now offer a wage premium. It’s worth just paying that little bit extra to boost your brand and become a prestigious player in the market.
You Reduce Legal Issues
Pay is a thorny subject. You need to make sure that you provide employees with a decent wage – one that will encourage them not to come after you legally for any reason. Your best ally when complicated legal issues are involved, therefore, is a quality lawyer who understands them. When you pay well, employees are much less likely to want to leave or sue. In fact, they’ll be grateful because they’ll know that they can’t earn more in similar roles elsewhere.
You Don’t Need As Many Employees
Business owners tend to see employees as substitutable. In other words, if one leaves, it is easy to replace them with another one reasonably rapidly. And while that’s true in some cases, it’s not so in all. Some employees are worth two, three, and even ten regular workers. So it pays dividends to send them a little extra money every month.
For employers, paying more for high-performers works out as a great deal. You only need to offer them 20 percent more, but you get 100 percent more output. And the work is often higher quality than you’d get if you hired two employees.
You Can Help Your Employees Focus On Their Work
Low wages can actually hamper the quality of your employee’s work in the office. If people must spend all day worrying about their finances, they’re less likely to focus on the task at hand. Employees are continually checking their bank balances, bills, and portfolios, trying to work out whether they can afford things. By paying more, you help them avoid this fretting, making it easier for them to get on with their work.