Question

Please write 2-3 paragraphs long. Thank you

Answer 1

Perfect pay system refers to paying employees more than the market rate which encourages them to put their greater efforts which boost the work productivity of an organisation. Organisations hike the pay of employees for their own self interest as increasing the pay invites the best employees to work for it. A job becomes more desirable for a employee when an organisation has the perfect pay system. A higher paid job is desired by everyone which makes the employees of an organisation to work harder to exist in their own jobs. The companies which have perfect pay system have never the dearth of hard working employees as large numbers of applicant wait to apply for jobs in these companies which makes the companies easier to replace the shirking one. Employees even would avoid to shirk their responsibilities in fear of losing their higher paid jobs than the market rate. There are instances of perfect pay system in companies like Amazon, Walmart etc. Amazon recently announced that it would voluntarily hike the minimum hourly wage to $15 compared to the market rate of $7.25 only. Amazon management team found out from their analysis that raising the minimum wage of employees would benefit more than its cost from the business perspective in a long run. Even Walmart also followed the path of Amazon and raised their minimum wage to $11 in 2018. When a company increases the pay unexpectedly, workers also reciprocate it by working hard for the company.

Though Amazon and Walmart have implemented the perfect pay system, most of the companies find it difficult to implement let alone discuss due to many reasons. Implementing perfect pay system in a company means paying equal wages to each and every employee irrespective of their performance. While there might be some really hard working employees, there will be also employees who just like to shirk their duties and responsibilities which will demotivate the hard workers also. Besides revenue of the company also will determine the implementation of perfect pay system. It will be a act of stupidity if the company faces losses with perfect pay system rather than implementing pay hikes based on employees' performances.