Why pay more?

[Leo]

In short Good Companies (not just high wage companies ) attract and hold and respect good staff, and staff in return work well.
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How often have we heard of companies , (they pay well but ?) they end up turning over staff and that ain,t profitable .

This is a well researched area, Maslow's work in motivation dates back to the 1940's. Once pay rises to a certain level where people feel secure, there's a diminishing return in any additional motivation/ commitment for further hikes in pay. Beyond that point, recognition, a sense of belonging and allowing people to reach their full potential is where it's at. Of course, it takes a really open and committed management infrastructure to foster that kind of environment.

 

[newtothis]

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New to this;
I find that people fronting an organisation , in spite of a lot having poor wages are still pleasant and helpful.I do not think customer facing staff get the recognition they deserve.

I couldn’t agree more. Many of the industries that have a high level of direct customer contact – retail, cafés, restaurants etc. have notoriously low wages. My current business happens to be in one of those areas. Before we started, as part of research I spoke to business owners in the sector. I recall one conversation where it was one long moan about how difficult it was to get and keep good staff. It turned out they were paying minimum wage: pretty much the going rate for the job. I thought at the time, why would you put someone on a minimum wage front and centre with building your reputation with customers?