by PN Schiavone

Created on: October 13, 2008   Last Updated: February 24, 2009

The real question should be are people more productive when they are paid more. I have had the opportunity over the years to be involved with employee compensation. I can unequivocally tell you that increased production is seen before a raise can be given. When money is just handed over to an employee more work is usually not realized. Every employer needs to understand what drives a more productive employee. First an employee has to have a desire to get more done. Second the employee must posses or learn new skill sets to increase the work output. Third, the company has to have a philosophy that will foster an enviorment for more productive workers. When all of the above are in place employees produce more work and the appropriate pay increase can then be given out.

I have rarely seen employees that do not have a desire to improve. The few that do not have this desire need to be sent home forever. The employer needs to really look at the environment that the workers are made to work in and decide if improvements to the work area are needed. I have been in offices where the lighting was so poor that anyone who worked there for more than 5 years had serious trouble with eyesight. I have seen production lines that make employees run back and forth in order to get supplies they needed to complete production. Many employers an unknowinly making inreased production harder.

Do the employees have the needed skill sets to increase production? I was helping out a firm install new computerized controls on an assembly line to help the workers enjoy more success as adjustments could be made at a computer screen without interrupting production. After the installation was completed a huge drop in production was noted. It was found out that 40 percent of the operators of he equipment were functionally illiterate. Now that they would have to read and interact with this computer screen, they could not become more productive. Better work was only realized after the workers with the proper skill sets were put into place.

Everyone wants to be part of a winning team. Is the environment at your company set up for winners or losers? All companies that have the winning mentality have systems in place that recognize and reward employee achievement. The recognition could be just a letter on the informational bulletin board that praises the employees achievement. The reward could be a better parking space, free lunch, the chance to sit in on a high level meeting. Money is not the only reward for employees.

When all of the above is in place the company will quickly see who the better performers are and can compensate them acdording to their contribution instead of paying more money to workers and hope they will do a better job.

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