You Can’t Achieve a High Level of Employee Engagement by Paying Minimum Wage

Many business leaders today want to have it both ways: On one hand they want loyal hard working employees who are willing to do whatever it takes to make the business successful and, on the other hand, they want to pay them the least amount possible. The problem with this is that paying low wages creates distractions for employees which means they cannot give their full attention and effort to performing their jobs.  For example, if employees aren’t making enough money to support themselves, they will worry and fret over how they’re going to make ends meet which means they can’t give their full attention to performing their job.  This is why companies with a high level of employee engagement such as SAS, JetBlue, Google, NetApp and Southwest Airlines make it a point to provide their employees with compensation that is at or above their industry average and a benefit package that’s fairly generous.  They want to minimize these distractions so employees can focus on performing their jobs.  As stated on the SAS web site, “They (employees) should be freed from many of the distractions of day-to-day life, so they can focus on doing their best work.”  Similarly, Eric Schmidt, Executive Vice Chairman of Google had this to say when discussing Google’s philosophy regarding employee benefits.  “The goal is to strip away everything that gets in our employees’ way (of doing their best work).”

My new book, The Engagement Formula, details the role that equitable pay plays in achieving full employee engagement. For more information, please click on the following link: http://rossreck.com/

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About Ross Reck

Who am I? I am the author of The Engagement Formula, Turning Your Customers into Your Sales Force, The X-Factor and my popular weekly newsletter: Ross Reck’s Weekly Reminder. I'm also the coauthor of Instant Turnaround!, REVVED! and the best selling The Win-Win Negotiator. I've also spoken at hundreds of meetings, conferences and conventions throughout the United States, Canada, Latin America, Europe and Asia. My consulting clients include Hewlett-Packard, John Deere, American Express, Janssen-Ortho, Inc., Shire Pharmaceuticals, Philip Morris International, the Chicago Cubs, Rolls-Royce and Xerox. I received my Ph.D. from Michigan State University in 1977. From 1975 to 1985 I served a Professor of Management at Arizona State University. During my career at ASU I was the only two-time recipient of the prestigious “Teaching Excellence in Continuing Education” award and was identified by the university as an “Outstanding Teacher.” In 1985 I left my position at ASU to search full-time for a new "Management Model" to replace the current model with it's emphasis on authority, control and formal communication channels. Last February, I found it (it's actually a leadership model) and it's featured in my new book, The Engagement Formula: Three Simple Steps that Guarantee Full Employee Engagement.

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