6th Pay Commission.
Money has been incorrectly considered as a motivating factor by many whereas in reality it is a demotivating factor atleast in the long run. For instance lets assume that you are being offered a 100 % increase on your current salary ( no one will give u that ) by a rival company. You leave your current company saying that a 100% increase is motivating enough to switch organizations. But when you join the organization you find that your peers in the same position or worse still your juniors earn much more than you . Now would you find the 100% increase from your earlier salary motivating enough to love the work you do? Though very subjective, most you will answer in negative . Did anyone say that money motivates ??
Let me tell you about one uncle, a close family friend who is an I.R.S. and has been serving for the GOI for the past 25 years. He has a daughter who has passed out from a coveted B school and has been working for just over 3 years. However their is a striking difference to the amount earned by the Father and daughter. The father barely manages to earn half the salary of his daughter. Had he been working in a private sector company he would have been atleast a Vice- President by now earning in lakhs which would be 3-7 times his present salary which would be very frustrating and demotivating . At a time when the economy is booming, the purchasing power has increased substantially the employees under the Government ( he may be a clerk or a Cabinet Secretary ) are not being paid a fair remuneration compared to their colleagues in the private sector. Their is absolutely no doubt in my mind that a pay hike for the employees in the government sector is warranted. But then the challenge for the government is to increase the salaries of employees to such a level so as to keep the scorching left happy but at the same time ensure that with the increase they themselves do not land in shambles.
It would be interesting what tricks does Mr. Palaniappan Chidambaram have with him for the upcoming budget in general, though from a pay commission perspective it may be inconse-quential.
posted by Krishnakumar Chirakkal @ 7:12 pm
4 comments
4 Comments:
Right dude agree with ur idea....and ur profile description is changed now...u working for an Ibank ...cool...when did u get in?...and how did it happen?
Distribution cannot take precedence over production. The government has to first generate that kind of revenue to be able to hike the salary which is how it happens in the private sector. It cannot be distributed as largesse.
Your first paragraph about money being a motivator was very interesting. In my view, the right work is the best motivator. You can check out my blog Make your passion your profession if you like.
@Unknown - Hi I have been working in the Mortgages Division of an US I bank for the past 5 months. I will email you with more details in some time.
@ Hiren - The governmenmt is in a Catch 22 situation on whether to increase the salaries of the employees or to make the departments achieve enough revenue and then give a raise . But then their is the Left factor .
Hey checked out your blog . very interesting also very true. will blogroll u asap.
1:29 PM
Most government servants are grossly overpaid even in cash terms - salaries for Class 3 and Class 4 employees are 3x their private sector equivalents.
Senior government servants are underpaid in terms of monthly cash compensation compared to performers in the private sector. However, they rise based on seniority alone and face no pressure to perform. They have no risk of losing their jobs. In the private sector, one person may make VP but 5x that number would stagnate at lower levels. Further, you must look at cost to society for government servants. An IRS officer in Bombay gets a 4 bed room house in Nepeansea Rd (worth about Rs. 2.5 lakhs per month if it has to be rented), various other perks (servants et al) and also a risk free pension linked to salaries of serving employees. Cost all this correctly, and you will find that even senior government servants are OVERPAID compared to average private sector salaries for people with the same level of experience.
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