(Solved Homework): Some companies pay their employees as little as possible as a way of reducing costs. Do you feel this…

Some companies pay their employees as little as possible as a way of reducing costs. Do you feel this is a good long-term strategy? Why or why not?

Expert Answer


Paying employees less to cut the costs is a wrong way of doing business. People are the assets of the organization, that is why they say, human resources is the biggest asset for any business. For a business to grow, it is those human resources who take care of your business.

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J.W Bill Marriott correctly said, “If you take care of your employees, they will take care of your customers and your business will take care of itself”. Stephen R.Covey said, “Treat your employees exactly as you want them to take care of your best customers”. Like wise, there are many leaders who have already put similar lines in books, which lays its emphasis on taking care of employees, and they will take care of your business.

A long term strategy will not work with dissatisfied customers. When customers are not satisfied, it means your employees are not keeping them happy. If your employees are not keeping them happy, it directly implies that they are not happy as well. If your employees are not happy, them you (employer) is the sole reason. An employer should make sure that his employees are happy, grievence free, and enjoy working in such environment. When they are paid peanuts, then they will definitely not be happy, because of the financial constrains on one side and job pressure on the other side.

So, it is always advisable to keep your employees happy to ensure that all your business planning and long-term strategies work and bring you huge profits and success. Because, once your employees are happy, they can make customers happy and increase your hapy customer base. More the customers are happy with your services, more loyal would they be with the company. It is all inter-related, in a chain form. If even one parameter is disturbed, the entire chain gets disturbed. And ultimately, it is the company who is the sufferer.

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