According to some, equal compensation should be introduced in companies for all workers to promote harmony. Although this implementation creates positive impact as well as respect amongst employees, I firmly believe that salaries and compensations should be determined based on the contributions made and does not make sense in giving same salary to all employees.
Firstly, there are many people working in a company and have different talents and skill sets. Everyone is different from each other and the percentage of their individual contributions may also vary. Many companies conduct yearly performance review and the Supervisor/ Manager rate the performance of each team members in the previous year. For example, in my previous firm, my team lead used to analyse the efforts as well as the exceptional decisions made by each team member in all four quarters in a year. This rating is then passed on to the manager for final review and the salary hike will be finalised based on that. In this way, assessment can be done efficiently and in a fair way to show appreciation to the employees who actually performed well.
On the other hand, instead of introducing a non-effective strategy of same salary band to all employees, corporations now a days use bonus system to encourage and motivate workers to show dedication and hardworking in the work place. For instance, it is very important to let employees know that their work is being recognised and fair amount of money will be awarded each year to show some appreciation. On top of that, it is also vital to provide an idea that bonus amounts are not same for everyone and also not everyone qualify to receive this. By doing this, employees will motivate themselves to put more efforts and showcase their extraordinary commitment to meet the goals of the company.
In conclusion, however many benefits are there if all employees are being paid equally, I strongly think that paying everyone equally makes them less productive and non-efficient and therefore salaries should be fixed based on performance only.