More than money itself, employees express more affinity and give more to those jobs where they manage to make an important connection with their environment.
The emotional power of salaries
By Manpower
Money is not everything when it comes to human resource management.
Nowadays specialists in this area agree that more than money itself, employees express more affinity and give more to those jobs where they manage to make an important connection with their environment.
In terms of salary, knowing when to say no to the boss has its advantages.
In her article for CNNexpansión, journalist Ivonne Vargas analyses the results of an investigation conducted by the United States Management Academy.
"The study 'Do Nice Guys and Girls Always Finish Last?' conducted on 20,000 professionals in the U.S. and Canada, found that rude men earn 18% more than workers who always want to be seen as 'good' or nice.
The National Wages Council in Costa Rica has included in the new formula national productivity per person and expected inflation, rather than past inflation.
Adjustments will be made based on the level of output and the central bank’s inflation target.
After 13 years of running the same system, private sector worker’s wages in Costa Rica will be adjusted using the new methodology, as announced yesterday by the Ministry of Labour.
Increased public spending in Costa Rica, especially in the payment of wages, has become a threat to the entire economy and should be corrected by cuts or higher taxes.
Overspending in the public sector and in the decentralization of institutions has meant that for the present year, 2011, a higher deficit than ever before in the last ten years has been projected.
The National Wages Council has finally approved the proposal submitted by the government to set wage increases in the private sector.
From 1 July private sector workers will receive an increase of 2.55% and for those employed within the lower income categories, the increase is 3.5%.
In this way, for workers who are within the unskilled, semiskilled, skilled and specialized categories, who receive a daily salary, along with to those within the unskilled, semi-skilled and qualified categories but who are paid monthly, the increase is ¢3,500 ($ 6.93) per 100,000 colones ($198).", noted an article Prensalibre.cr
The private sector, unions and government have put forward different proposals.
The possibility of amending the method for calculating the wage increases has provoked strenuous debate between unions, government and private business representatives.
The three proposals differ in many respects and so far the parties have not reached any consensus.
The initial goal was to strike a deal before July, however, given the differences an agreement is not expected to be reached before October, which would mean the new method would not be implemented until January 2012.
The multinational has reached an agreement with the main Honduran labor union to create a $1.54 million relief fund to help workers made redundant.
Two factories that supplied NIKE were forced to close in January 2009 and still owe $2 million in salaries and benefits to 1,800 employees, an insignificant amount compared to its $19 billion revenues last year.
Starting July 1st, private sector employees will earn between 3.96% and 4.2% more.
Blue-collar workers (construction workers, kitchen assistants, warehouse operators, etc) will receive a 4.2% wage increase, while white-collar workers will earn 3.96% more.
“The National Salary Council, composed of workers, business chambers and the Government, agreed with the proposal presented by Labor Minister Sandra Piszk”, reported Nacion.com.
The business sector agrees with unions in the need to modify the current scheme, but differ in how to implement it.
Unions want changes “that recognize past inflation and at least half the expected inflation for the current year”, said Mauricio Castro, director of the National Association of Public Employees.
Businesses prefer to promote a unified minimum salary, allowing a dignifying lifestyle for any worker, whatever their job is.
Costa Rican legislators voted themselves a substantial pay rise as their first action in Congress. President Laura Chinchilla announced she will veto it.
A large majority of the legislators passed (in first debate) a bill that almost doubles their salaries and ex-presidents retirement pensions. With the bill, they would earn over $9.000 a month.
During the process, the Costa Rican society strongly rejected their legislators behavior, whom even treated the project as an exception to pass it as quickly as possible.
Bonuses to personnel must be balanced with the company’s short and long term perspectives.
Jorge Londoño, president of Grupo Bancolombia, explained how they applied the Shareholder’s Value Added System (SVA) in this bank, in such a way to prevent short term problems or distortions when applied.
Londoño remarks that “in our philosophy, the size of bonuses does not matter.
Even if the economy recovers, there may not be enough resources to increase salaries. However, a pat on the back is always well received.
Increasing remuneration is almost always the best tool to motivate an employee. When it is not available, we must turn to other options, that, if used correctly, can compensate the disillusion of not getting a pay rise.
Starting January 1, 2010, all private workers earning minimum wage must have their salaries increased 5%.
Representatives of Costa Rican Worker Unions had requested a 7.74% increase, whilst the Union of Business Chambers and the Private Enterprise had offered 3.9%.
This afternoon, the National Wages Council approved a 5% wage increase, which is 1% above the expected inflation rate for the second half of 2009.
Acknowledging and rewarding good performances improves employee satisfaction and increases the organization's productivity.
Explicit recognition must be part of the staff management strategy, as much as an adequate remuneration policy. Salary is not the only source of satisfaction for employees.
"The big problem in organizations is that most tend to confuse recognition with compensation.