Why do you pay people? No, really?

(Originally published on LinkedIn at https://www.linkedin.com/pulse/article/20141204175129-3616140-why-do-you-pay-people-no-really)

Ask this question to cross-section of professionals across functions and experience levels, and you are bound to get millions of answers. Some of them might look like these:

  • For their knowledge, skills and abilities
  • To do the job!
  • For their efforts
  • For their time
  • Because the law says we must pay them!
  • Else they won’t work
  • So our competitors can’t poach them
  • So they stay committed
  • So they don’t make noise
  • Because I am worth it!
  • and so on…

Sadly, none of these are the right answers in my view (though some of them might be correct, technically speaking). They reflect the largely old mindset that people’s motivation and loyalty (rather, forget these fancy words – actually we are only interested in one thing, and that is productivity!) can be best bought for fair wages, which was perhaps ok when you gave them a one-size-fit-all standard process that they had to follow. A hundred years back, Henry Ford raised his workers daily wages from $2.50 to $5.00 just so they won’t leave his plant (full story herehttp://www.thehenryford.org/education/erb/HenryFordAndInnovation.pdf), where he had built a then ultra-modern system of manufacturing that needed them to simply follow the process blindly (and newcomers on the job could learn the ropes in five minutes flat). So much for paying people to get the job done!

However, what about today? Why do you pay people? No, really?

I think the only reason why we (must) pay people is so they bring ideas to the workplace. New, big, fresh, stolen, borrowed, bold, controversial, unscientific, unproven, risky, weak, potential gamechangers, disruptor of status quo, creative, ridiculous, audacious (big hairy audacious is even better), slayer of mindless bureaucracy, harbingers of change…just about anything will do as long as they bring something to the workplace, as opposed to just being a plug-and-play part in the giant corporate machinery whose daily activities are pretty much pre-decided as per the giant process manual. Much like washing the cars. As long as they don’t see the workplace as a watering hole (or, more contemporary parlance, see a place where they can charge their cellphones – both literally and metaphorically), but like a literal greenfield where they enjoy freedom of tilling fields and joy of sowing seeds and the grit and patience of seeing them grow and flower. Chances are if you are not hiring people for these traits, and not creating conducive environment (including paying them or rewarding them) for these behaviors, they are probably bottling up their real abilities – and you are shortchanging yourself! Given half a chance, they will surely walk out to a place that offers them such chances (and their tribe is surely swelling every passing day), but you perhaps stand to be the biggest loser by not benefiting from their creativity and new ideas. Who knows, they might go across the street, open their startup and buy you out in a few years from now 🙂

Do you pay people for blind obedience to a fixed process, or something else?

In today’s knowledge age, our employees perform best when they bring their ‘heart and mind’ to the workplace – they need to see an emotional connection to their workplace and they must be cognitively challenged by the work to be creative, happy and engaged. Anything short of that, and they are only likely to somehow get through the day! So, do you know why do you pay your employees?

As for me, if my employee doesn’t bring anything new to my workplace, they can as well take their old and stale ideas to my competitors. I would much rather they have it!

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