Saturday, May 8, 2010
I always thought that government employees were way overpaid. That's why they are all so lazy and inefficient. The latest news about Greek government employee salaries just reinforces that fact. Can you believe they get paid 14-months worth of salary for their European 10 months of work? Why in the world would you ever pay someone for time they aren't working? If you overpay, you can expect problems not just with the company finances but also with employee productivity. You get more out of your employees by underpaying them as much as possible. When they need that next paycheck, they are beholden to you. That's when you extract the most productivity out of your employees. If you pay them enough to be comfortable, then they slack off. It's simple psychology and economics.