Employee salaries should be a priority

ONE of the major criticisms of capitalism is its callous disregard for worker’s welfare in the drive for profit. And some of the ground-breaking innovations in the workplace have been prompted by the need to circumvent human involvement in the production process.

If it were not for labour unions, machines will have had replaced the majority of workers the world over.

But machines are mechanical, while human involvement is invaluable.

Since 2009, local companies have been rationalising their businesses, and workers have unfortunately been on the receiving end.

Most employees in Zimbabwe either complain of not getting their salaries on time and in full, or not getting the salary altogether.

Granted, some companies might really be facing serious challenges that are affecting their ability to pay.

However, there is now a new breed of employers who are selfish and do not necessarily respect their employees.

They view workers as cost centres that need to be cut or rationalised in order to generate more money for the business.

Employer-owned businesses are the worst in this regard.

It must be noted that the relationship between an employer and his or her employees isn’t complex. It’s also very simple; it is based on money.

The employee typically works for the employer for 22 days in a month. Following this time period, the employer pays the employee and they are even again. The relationship restarts.

An employee, just like the employer, has needs too.

Whatever personal excuses employers might have in not settling workers’ dues on time, they must understand that employees, too, have equal responsibilities.

In order not to disrupt a healthy working relationship, employee salaries should a top priority for any business.

There are countless studies that prove that employees that receive their salaries on time are more productive.

A study on wages, productivity and employment that was carried out by the Institute on Employment Studies in May 2011 showed that indeed “the idea that wages are related to marginal products is plausible and, under assumptions of perfect competition, wage moderation would translate into output expansion”.

But the potential increase in productivity is muted if employees are not being paid.

Some of the misdemeanours of workers who are not happy with their pay include routinely turning up for work late; not turning up for work at all in some instances; long and endless lunches; knocking off early; and stealing.

In sum, if workers keep reporting for duty in an environment where they are not being paid, they might be loyal, hopeful or stealing.

At the end of the day, it is not in the interest of the business. The bottom line is that employees should be paid, and paid reasonably.

In an incredibly challenging business environment, it might actually be really difficult for businesses to pay salaries on time, and it is in such circumstances that employer-employee relations become handy.

Where a strong bond exists, it becomes convenient to negotiate with workers on a reasonable and manageable payment plan.

If the situation is really dire, there might be need to actually retrench.

While retrenchment costs might seem expensive, they certainly reduce the burden on the employer in the long run.

Also, work relations might seem fraternal, but they are purely based on business.

Workers, as they often do, have the right to pursue their outstanding salaries in the courts. A disgruntled employee is very dangerous. They can even sell company secrets to competitors and cause its downfall.

Thus, high staff turnover is never good for any organisation. Not paying employees on time can result in high staff turnover.

Training new employees can be time consuming and very costly.

Some local companies take advan- tage of the obtaining tight job market in order to hold workers “hostage” knowing full well that they do not have any option. Jobs are really hard to come by. A job should be a space where a person’s creative juices and innovative ideas flow. And staff motivation, through salaries, can be a catalyst. Happy employees can go the extra mile and perform beyond expectations.

High productivity can also mean high revenues and more profits. It should be considered that employees are not objects; they are human beings too.

Put simply, wages and salaries should be top priority. They should never be taken for granted.

It, therefore, becomes necessary for managers to strengthen their human resource departments in order to forge sustainable relationships with the workers.

Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe and an estate administrator, with vast experience in tax, accounting, audit and corporate governance issues. He is MD SAFIC Consultants and writes in his personal capacity.