Deflating Wages as a Motivator?

November 15th, 2013 § 0 comments

In both my COMM 101 and 292 classes, increasing wages and other benefits were strategies to improve productivity and quality of work. This was a strategy in which I trusted as well as believed in as a way to make myself more productive. However when seeing Kenny’s blog regarding this, I was surprised to see that reducing wages could in fact also be used as a motivator in the workplace.

He references a Cornell article (www.ilr.cornell.edu/ICS/InsightsAndConvenings/upload/research-for-the-real-world-03-11.pdf), and goes on to describe how a “delayed payment” strategy could be effectively used. This model is essentially deflated wages at entry level positions and inflated wages at senior level positions. In actuality, this is not very different than current practices. While the wages are deflated early on, their inflation in the end makes up for said deflation.

From the view of an employee, I could see this as an effective motivator. However, this motivator would also have to entail loyalty towards a company, ensuring that they receive the lost wages in the long run. If you’re looking for a short time job, you may find better opportunities elsewhere.

https://blogs.ubc.ca/kennywu/2013/11/10/lowering-wages-as-motivation/

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