It is often observed that the leaders of renowned institutions receive significantly higher wages than employees in clerical positions. While these institutions believe that such practices are essential for competing in the international market, I completely disagree. This approach may deter new talent from entering the workforce and diminish the self-esteem and efficacy of existing employees.
Firstly, a company that fails to promote talent equitably will ultimately find itself lacking skilled workers. If the policy for promotions varies widely within an organization, it will discourage qualified professionals from applying for jobs when positions become available. Over time, this could result in a serious shortage of skilled workers. For instance, many employees in corporate organizations in Bangladesh leave their jobs annually because of promotion disputes, opting instead to join companies that value their abilities.
Moreover, the current employees may experience a decline in self-efficacy and self-esteem due to salary discrepancies. If those in lower positions do not receive adequate pay or promotional opportunities, they may feel undervalued and, consequently, lose motivation to enhance their skills through further training. This, in turn, can harm the company’s overall performance. For example, in the dealership business in Bangladesh, sales representatives often face slow salary growth and delayed promotions. As a result, they become disillusioned and cease to put effort into developing their skills, knowing that their hard work will likely go unrewarded.
In summary, although company authorities may believe that offering high salaries to top executives is critical for larger benefits, I strongly disagree. This practice is likely to backfire, leading not only to a loss of talented professionals but also to a decrease in the motivation and spirit of existing employees.