Big Businesses should keep more salaries and incentives of their higher executives and CEO’s as compared to low and middle level class. In my opinion, I completely agree with this view because incentives are paid according to the position at the workplace. I will discuss more points to support my view in the following paragraphs.
Firstly, huge companies or even small companies comprises of hierarchy in their management system, which indicates the level of responsibilities of every individual working in the company. Therefore, salaries and wages should be considered according to the level of work and responsibility. Hence, as higher executives and CEO’s are at higher position of the company, they should be paid more than other workers of the business.
Secondly, if the company pays more to higher levels, it will create a sense of competitiveness among the middle and low level workers. Both of these position employees will start working hard for the company in expectation of promotion to the upper position, so they can also earn more money. Moreover, this will be beneficial for businesses as all the employees will work hard and return in companies profit. On the other hand, let’s assume that each worker working in the enterprise at any position receive same salary, this will result in demo among the higher officials as they would not feel any difference of status in comparison to other individuals at lower levels.
To conclude, I strongly stand with the view that remunerations must be given according to the level of hierarchy of employees as it creates the atmosphere of motivation, competitiveness and fairness towards the people working for the companies.