Today, thousands of workers in India and other countries struggle to make ends meet. They put in their best efforts and receive as low as possible in return. According to a study, the minimum wage in India was recorded as INR 176 per day in 2017.
Do you think it is possible to have a decent lifestyle to pay that less?
Do you think that these workers are successfully able to support their families?
It is evident that the employee-side has a valid point when we talk about minimum wage. But, for businesses too, it is a crucial decision. The business owners need to consider their revenue, future propositions, and the overall financial impact on the company.
However, employees drive the growth of an organization. If your employees have a respectable, smart salary, they would be able to live happily in personal and professional life. This happiness will soon radiate in their work and you would see these employees exhibiting high productivity and performance.
Here are some of the important reasons for increasing wages:
1. Attracting Talent
Every industry is currently experiencing a change and we need skilled people to encounter this change. Various factors related to hiring impacts organizations:
- We are in an employee’s market, which means that low paying jobs can soon turn vacant as employees may leave.
- There is a high demand for talented professionals but low supply. The employee that may be perfect for your organization may already have a few other offers.
- Even when a talented professional joins your organization on a low-paying job role, he or she may soon become frustrated. This is due to the fact that all of us have some personal monetary needs and we all need to support a few family members. If these needs are not accomplished easily in a low-paying salary, the employee becomes frustrated and stressed.
2. High Performance
Undoubtedly, there are several other factors that impact employee happiness, engagement, and performance at the workplace. However, the salary is still the biggest motivator. Even when individuals accept a low paying job in a quest to learn and become a part of the growth of a startup, they are getting enough to have a good lifestyle.
Hence, salary becomes the motivator of every individual and when people are happy at the workplace, they put in all their efforts for work. This means high productivity and short turnaround time for projects.
3. Enhanced Employment Brand
When your employees are well-paid and happy, they vouch for your employment brand. There is nothing better than your employees referring your organization to other employees. Next time, when a position goes vacant, you can simply organize a referral drive, in which your existing employees can refer people who may be best for the post. In this manner, you won’t have to spend months searching for talent. Your employees will help you reduce work loss.
4. Lower Employee Turnover
It is all connected. When employees are happy, productive, and they are able to fulfill their needs, they stay. Further, when they know that they will receive a fair pay raise every year, they don’t accept other offers as quickly. Unless your employees have a ground-breaking opportunity or a specific need to move out, they would stay loyal to your organization – reducing employee turnover. When that happens, the HR department and the business automatically flourish.
5. A Way to Economic Growth
Finally, the overall benefit of increasing minimum wage lies in the benefit of the country. All the extra money offered to the employees will eventually enter the economy through rent, necessities, etc. This would lead to comprehensive growth in the economy.
Think about it, wouldn’t you love to have some extra cash in your pocket?
While many of us may not need that extra money for basic necessities of life, a lot of people do. There are various families that are hanging by the edge because the main worker of the house is not able to make enough money. Even after hours’ worth of work, earning INR 176 per day can’t satisfy the basic needs of the household. Hence, HR managers should now think of increasing this minimum wage for the betterment of the country and its economy.