Jul 13

How would you live with the salary of your employees?

When it comes to salary, we do about a complex reality in which the economic returns of the company, worker effort, motivation and other considerations join a legal basis to complete a monetary perception.

Due to the particularity of each company, it is not possible general judgments about the salary, but we can reflect on some aspects related thereto. Have you ever ever wondered how you would live with the salary of your employees?

Any questions dangerous?

The danger to fulfill ourselves this question, is that emotions could book away from reality and we can not always pay what we would like because of our financial results. For a business to be sustainable, it must respect the balance between all your accounts, especially with the often be bulkier: wages.

On the other hand we have the idea that more pay, better performance and to start generating more profits must increase the salaries of key parts of the organization. We must be very critical of this, as it not only depends on salary but how we structure the variable (if any) and how it relates to the performance, and the size of the template and the distribution of tasks and responsibilities.

SMEs find it very difficult to compete with the big salaries from companies
Therefore, we can not expect a profit improvement by simply increasing the salary, but we must go further. Furthermore, once the increase is almost impossible to return to the previous situation and also not recommended in terms of working environment. The company is an organization with capital inflows and outflows, and there are things that are simply unsustainable.

The balance must be everywhere, including in our mind, and we must remain objective about the survival of the business, but not so as to neglect the welfare of the teams.

Therefore, the question can be dangerous if we can not be objective, but in many cases it can be a positive reflection and can help us understand how our employees live and how we can help them thrive.

Malpractices

A leader must make the best decisions on behalf of the common good of the company and its workers, being something that can be really complex when it comes to money. Still, there are some cases where corporate leadership is not fair or ethical and that we can not ignore.

Wage levels are not always suited to the business performance, but concepts such as professional or a policy of “minimal.” For many it may be risky to take decisive action on wages, as the “good times” do not live forever and a structure of “spending” crowd can become a burden that we could bring to closing.

Each case should be examined individually, but impossible to ignore issues and offered wages that do not conform to the benefits brought by employees to organizations, but fortunately we also have many examples to the contrary.

The case of Enzo Rossi

A few days ago, the Italian newspaper “La Repubblica” published the story of Enzo Rossi, a businessman who tried to live for a month with the average salary of employees: thousand euros. This marked his salary and that of his wife in that amount.

After paying fixed expenses realized that he could not get through the first 20 days of the month, so he was aware of the difficulties that spent their employees, deciding his salary raise them $ 200, given that the cost of life had increased by 150 euros per month.

Beyond that family expenses are based in part on the particular conditions (like business expenses) and lifestyle of each subject, found that the wages paid were insufficient. That is, not only wanted to do but could not.

This is a sign that in some cases it may be good to reflect this style and try to be just fair, seeking the best for the company and its “elements” basic: people. But yes, considering the rise in wages as an isolated action might be less efficient than performing a global action aimed to link wages to the actual evolution of the company.