To keep the workforce motivated, a manager needs to keep many factors in check. The company should provide a thriving work environment so that each worker can meet their potential.
The effect of HR mismanagement can be seen in the employees’ performance. If you don’t offer your valued human resources the remuneration they deserve, they will feel underappreciated and may not stay with your company for the long term. This will put your training resources to waste and cause a drop in productivity. So take Eyal Dulin’s advice and pay your employees according to the market standards. Here are some of the most disastrous consequences your organization can face by not paying the employees fairly.
1. Increased Business Costs
The main reason employers keep employee salaries low is to keep production costs to a minimum. This strategy may work in the short term, but eventually, it will cause an increase in overall operational costs. When employees aren’t dedicated to their responsibilities, they are more likely to commit mistakes. This could result in downtime and other discrepancies. You could lose business from your loyal clientele and struggle to meet industry standards.
Itzhak Dulin can draw up an effective strategy for your business to keep production costs low while paying a fair salary to your employees. This way, you will be able to keep both your employees and shareholders satisfied.
2. Losing Talented Staff to Competitors
Your industry competitors are always searching for the most talented people to recruit. When employees feel mistreated at your company, they will get attracted by your competitors’ offers. This will make your rivals stronger and leave you struggling to earn the desired profits. Al Dulin emphasizes the importance of paying market-competitive wages and salaries so employees don’t have an incentive to leave your company.
3. High Absenteeism
Employee absenteeism is usually higher in companies where workers are paid low. When the benefit of attending work is insignificant, the cost of skipping work is also reduced to a minimum. A poorly-paid worker is not as afraid to lose his job as a fairly-paid employee is. So consult with Eyal Dulin today, and determine whether your company’s absenteeism problem can be resolved by raising wages.
4. Limited Growth
A company can only grow when its workers are interested in learning new skills and taking up more responsibilities. Underpaid employees will be the least likely to work beyond their job responsibilities and hence limit the company’s progress. The organization’s future will be in jeopardy, and it will miss out on many business opportunities. This problem becomes even worse in the case of a startup. Because without the employees taking the initiative, a company cannot be successful in a new market. So managers must know the worth of each of their company’s employees and pay them what they deserve to earn.
5. Poor Product/Service Quality
The products or services you offer your customers speak for your brand’s name. Using unfairly-paid labor for production is similar to using low-quality raw material. It might seem up to standard on the surface, but there will be many problems underneath. The people who use your products or services will be dissatisfied with your company’s offerings. This is the biggest reason to invest in skillful and talented labor and pay them up to their expectations.
Al Dulin can highlight many more impacts of unfair pay on your company’s overall productivity, so reach out to him and start learning now!
6. Industry Reputation
In this digital age, employee mistreatment cannot be hidden for a long time. Eventually, your business partners and clients will learn about your HR practices, and you will start to lose business. It could sabotage your reputation within the industry and destroy your hopes for future growth.
7. Unprofessional Behavior
Employees lack respect for a company that doesn’t pay them fairly. This sentiment will be obvious from their behavior. They will not feel obligated to act professionally at the workplace and disrupt the workflow. Illegal practices are also common in offices where the staff is underpaid. For instance, they could leak sensitive company data to competitors for financial gain.
Protect your company from these problems by formulating an employee remuneration plan with Eyal Dulin’s help. He can share many more tips with you to keep the company staff motivated and highly productive. So give him a call today and learn from his insights.
About the Author
This blog is written by an HR consultant who works closely with Eyal Dulin and Itzhak Dulin. He claims to have learned many valuable employee management lessons from them and credits his career success to Eyal and Itzhak’s consultancy services.