Linking salaries of corporate executives to those of their lowest-paid employees


The idea of "Linking salaries of corporate executives to those of their lowest-paid employees" is very much a debatable topic. On one hand this seems to be an illogical thought while on the other we may get to have the benefit of improving workers morale and productivity. On careful evaluation, I find that the cons of implementing this sought of a payroll strategy outweigh the pros.
Payroll structure of an individual is decided based on various key factors like educational background, previous experience, personal traits, skill sets, and the kind of role one is going to take up. Consider the kind of roles and responsibilities that a Worker A and Executive A will handle. There will be heaps of difference between them - they are just non comparable. Salary is one factor to demarcate and respect the importance of the role played by Executive A in the organization.

Secondly skill levels expected out of a worker can be that of a 10th grade student while same is not the case for the Executive. He is expected to possess at least a Graduate degree. Many would agree that 10th grade should not be and cannot be equated to an MBA degree. The Executive who has spent time and money for his education should be respected and Salary is one way to respect his knowledge and education.

Also, consider the years of experience the Executive might have gained before he reaches to this level or position. As a worker, one might start their career with zero years of experience. Usually a worker with the least years of experience is the one who is least paid. It is absolutely illogical and inhuman to pay the same salary to an Executive who has reached his level after years of hardships.

Given a situation where the salary is not going differentiate whether one has experience of less years or more, has skills and expertise or not, possess education and knowledge or not, then any employee would prefer to have the least qualification and get the least salary. After all, everyone looks for a job opportunity in order to earn a living, a better living. Noone would like to get devalued as they grow up the ladder, not even the workers. Though one might argue that, it will increase the morale and productivity at workers level, It will highly demotivate and lessen the productivity at top management level. This balance is very important for the well-being of the company. There are other multiple ways to bring up the productivity of workers, this definitely is not a wise idea.

However, given an option that the basic salary of a worker and basic salary of an Executive is equated and the Executive is eligible for other extra perks and benefits (which the worker is not entitled to), then this idea is something that can be worked out better.

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