It is true that many CEO’s and directors earn proportionally high salaries in comparison with an average workers. As a consequence, there is a debate over whether it is a needed practice or it is an unequal way of how it works. Although, both views have merit, I consider that increasing the wages of ordinary workers by their efficiency can help to bridge the gap in this situation.
On the one hand, employees are an integral part of any business to run successfully. They carry out the bulk of the work by operating daily tasks and meeting strict deadlines even in situations when there is pressing commitments. When they do not get awarded accordingly, it may lead them to lose motivation to work and accomplish given tasks. Moreover, when an average worker sees how their directors take a large amount of money to their home, it can arise a strike between them, by leading workers to be disloyal to their company’s.
On the other hand, directors are responsible for shouldering any administrative tasks and problems, particularly in harsh economic conditions. CEO’s in most cases are the founders of the business and it means that they already taken the risk and financial responsibility of it. Additionally, they often should to cope with stressful situations and often work without any required schedule as the problems can appear any time of the day. This can deprive them from family time and needed rest, consequently can lead to some conflicts with members of their family and health issues. For instance, majority of interviews from family members of business owners claim that they are unable to commit their time to them and often missing important events among the relatives.
Nevertheless, implementing a KPI system can alleviate the mismatch between salaries and boost productivity of employees. Particularly, rewards like perks, bonuses and incentives can help to average workers to fulfil their additional needs by increasing their loyalty and motivation to work harder on behalf of the company .
In conclusion, even taking into account amount of work an average worker face everyday, directors are bear all the costs of a company and responsibility in any operation of the company. However , by rewarding employees directors can stimulate them to work harder and stay loyal to them.