I’ve been in discussions with a former colleague planning to start a new company, and one of the things he’s constantly been mentioning is that he will make sure to pay his employees enough. His thinking is that employees won’t be as effective if they go about all day worrying about how to make ends meet. He would rather that his employees have their needs covered, so they can stay focused on the task at hand.
However, it’s also best to pay employees what they’re worth. It’s also not good to overpay employees, as they might not perform at par with what the company expects. So this is a problem a Human Resource team might face—striking a balance between an employee’s worth and his needs. When the right combination of these considerations is used, a business is most likely to achieve efficiency in human resource utilization. Your employees would be happy and satisfied, and your business will be able to produce output efficiently.