N. Raghuraman's column: Giving less money is not like saving, but investing in mediocre things

A few months ago, we hired a house-help, as the first one shifted to another city after marriage. The new employees were in a difficult situation and were in dire need of a job. We first explained the responsibilities to them and then asked how much salary they would take. We were surprised to hear their price. We understood that her financial situation was too bad for her to bargain. Since we knew that one way or the other they would know the salary of the previous employee, we said that you will get the same salary as the previous employee. Hearing this, his happiness knew no bounds. Since she started working, she has been doing better and smiling than the previous employee in every respect. When we gave her extra money for extra work, she cried. Most of us know the basic principles of economics that price affects quality. We are willing to pay more for reliable machinery because breakdowns are expensive. In important cases, we employ experienced lawyers, as mistakes are costly. Yet some institutions expect highly educated professionals to produce exceptional results at salaries that are not commensurate with their expertise. The Greater Hyderabad Municipal Corporation (GHMC) is an example of this, where the salary of a sanitation worker is higher than that of a skilled IT employee. The GHMC in a tender notification issued recently sought professionals for the posts of Hardware Engineers, Database Administrators, System Administrators, Network Administrators, Programmers, Team Leaders, GIS Analysts and Web Designers. This caught the attention of the people, as the salary offered was low. The GHMC has proposed a monthly salary of Rs 28,000 for 12 hardware engineers. The monthly salary for a senior GIS analyst with MTech and three years of experience has been fixed at Rs 37,000 and for a web designer with six years of experience with BTech, Rs 42,000 per month. On the contrary, the newly appointed sanitation workers will get around Rs 30,000 to Rs 35,000 per month. With the increase in seniority, their salary can reach 70 to 80 thousand rupees. Interestingly, GHMC officials cited the reason for this is that there has been no pay-scale revision of outsourced employees in the IT sector. The first result of this is that the best candidates do not apply. Skilled professionals know their price. If they have spent years in education, certifications and gaining experience, they naturally compare opportunities. Impractical salaries attract frustrated candidates, or people who consider this job a temporary hideout until they find a better opportunity. The second result is even more damaging. Those who accept the job are dissatisfied from day one. Every assignment reminds them that they are underestimated. Instead of 'How can I contribute better?' they start asking, 'How soon can I get out of here?' No motivational speech and team-building activity can compensate for the persistent sense of injustice. The institution has to pay a hidden price for this. The rate of employees leaving the job increases. Projects slow down. With every resignation, the knowledge goes out. Recruitment expenses increase. Managers spend more time finding new people than nurturing talents. Eventually, customers also notice the volatility in service and execution. But this does not mean that every startup or small business should pay as much as multinationals. There is a difference in resources. But fairness should never disappear. If cash is limited, institutions can compensate by offering transparent growth methods, performance-linked incentives, learning opportunities, meaningful responsibilities and respect. Employees often accept lower wages if they see a future. But hardly accept a situation where they are underestimated and do not promise growth. The trick is that when human beings feel respected, they contribute mindfully. When they feel humiliated, they only give their time.