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So – How Much Do You Make?

Photo by Joe Raedle/Newsmakers

According to a study done in a German warehouse where salaries are based on performance, knowing your co-workers’ salaries makes you more productive.

 

In this particular warehouse, when workers found out they were going to learn what everyone else was making, productivity went up 2.8%.  After they found out, productivity increased 4%.  My question is, how do you think something like this would play out in this country?

 

I asked that question on the air this morning and got some interesting responses.  General consensus was it would have quite the opposite effect here.  I wish that weren’t the case.

 

In this country, many (including myself) are of the belief that the majority of workers would think to themselves, “So and so down the hall is making this much and I’m only getting paid this much.  Well screw ‘em!  If that’s the case, I guess I’ll do “only what I need to” in order to get by.”

 

I really do wish I could argue the opposite would happen, but you ask anyone who works in retail and they’ll tell you that there is no company loyalty anymore.  If someone can make more money down the street at Brand X, they’ll leave in a heartbeat.

 

Perhaps corporate America has made us this way, I don’t know.  To me, company loyalty is a two-way street – it’s something that has to be nourished from the top down and vice-versa.

 

I do know that if I were running a business, every chance I got I would tell my employees how much they meant to the operation.  A “pat on the back” can go a long ways.

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