What if employers paid their employees the highest salaries they could have?
According to the psychologist and best -selling author Adam Grant, is in the best interest of an employer to pay their employees as much as possible – in the form of a high starting pay and uplift.
Higher wages give workers an increased incentive to stay in the company, leading to Best holding rates, The lower costs of circulationAnd a more sustainable workforce in the long run, he says. Grantitni Frames Higher salary as an “investment” for companies.
“Giving people for a rise, and in particular, paying them well – some will even say that paying them extremely generously – it's an investment in motivation and retention,” Grant relevant Luck.
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peak CONSIDERATIONS Since replacing an employee can cost a company up to twice the employee's annual salary – much more than an average annual growth of 3.8% in 2024, according to data from non -profit tank Conference Board. However, job discarding may not give a significantly higher salary, however. By Federal salary data Released this week, people who stayed in their jobs saw their salaries increased by 4.6% in January and February while the shifts suffered a slightly higher increase of 4.8%.
Adam Grant. Photo by Brian Stukes/Getty Images
“When organizations pay at the end of the market range, they end up with unusual loyalty because people know that they cannot easily repeat the salary they are receiving elsewhere,” Grant added.
Higher wage employees are also more motivated and engagedFor the HR compensation site figures. By peakHigher employee engagement means 78% less absence, 18% more productivity and 23% more profitability.
Meanwhile, a new Harris survey survey For the Bloomberg News released last week he revealed that three in four workers think employers have the upper hand in the labor market. The employment rate for all workers was 3.4% in Januarya low point in the last decade while work posts were down 8.6% In December compared to the same time last year.