If Employee Is An Asset, Why Is Salary Not An Investment? - CiteHR
Boss2966
Industrial Relations
Vishwanathsavula
Human Resources
Vrnekkalapu@gmail.com
Dy.gm(personnel&admn)
Jenni Murphy-Scanlon
Strategic Thinking Expert
Vilom
Executive Hr
Cite Contribution
Community Manager
Pon1965
Construction
Amrith.S
Mba Student
+3 Others

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Hello Sir,
Today every organisation considers employees as an asset. But when it comes to negotiation of salary, why is that they consider it an expense instead of investment. What makes them so blind that they cannot identify the efficiency in an employee and just make a very low pay structure.

Employees expectations can not be met by any employer. What do you mean as low pay structure? Every organisation has got their own policies on pay scale. It is incorrect to generalise. There may be exploitations sporadically which I agree but why any one join there where the pay scale is not in commensurate with the qualification & experience.
Pon

Hi
I am just First year MBA student, i hope i can share my views to you, though i am not an employee yet, if anything silly, just forgive me,
Even if you buy an asset, you may feel to get some output from it or the asset value should be worth. The same case works at pay structure too. Organization will also look for the same. Even if they buy you at low pay at the beginning, i am sure they will increase the pay scale once they find efficiency on your work.
Regards
Amrith..

Hi all
Actually the pay scale is depend upon the firm top management, when the employee accept the salary then HR expect the candidate should worthy for the salary so if u want high salary so go that kind of job then say ur expectation at the time of interviewer asking,

Greetings,
Pay is decided based on the budget for the role. This is arrived after a long research on Skill-sets required, market correction, parity and urgency to fill the position.
You will understand the mechanism as you work along. It is not what it seems from the receiving side.
The employee is free to choose to work in that pay or leave for a better role.
An individual is required to weigh his requirement towards the earning potential vis-a-vis to the market standard and then build the expectation. High salaries are great, initially. However, its the medium and the low range salary earners, who make it to the big, for the fact that they remain easily employable.

Dear Indu If an employee is an asset, then monthly remittance of salary may be maintenance charges for the asset and not an investment. hahahahahhaaaaaaaaaaaaaaaaa...... :) :) :) :)
Dear Indu,
I think it is very imp. point which you have raised! Now a days except few employers others are exploiting employees; it may be in terms of time, work, salary etc. The Factory Act and minimum wages act were came into existance to protect employees from such Employers. I think if employees make unions there is no harm until and unless it works fairly and not politicised. There is also need of Fair wages Act because Employee is like a product if anybody is ready to give him more price he must quit then only Employers will think about Employees benefits and welfare.
Vilom Mane
A very junior Training Officer
Gujrat
96625-36205

Great point raised, many times the HR feels that they have to give some X amt only might be their budget constraints or their personal POV. So as a candidate best is we should avoid the companies which dont pay our min exp salary and literally avoid giving interview in companies who dont mention salary and mention that salary will depend on experience and qualification, because manytimes employee goes with expectation that based on his experience he will get 5 LPA and company has maximum limit of 3 LPA only. So instead of creating such misunderstandings where both employees and employers are not satisfied both the employee and employer should have clear understanding of their limits. And since it is the employer who advertises and invites candidates he along with detailed JD should mention the salary range which the post carries so as to attract only the perfect candidates , but if you see the job posting in naukri.com almost all posts contain salary will be commensurate with qualification and experience.
Dear Friend

You have raised one important topic which is necessary to every HR professional to think at once. No good employer feels the salary of employees as an expenditure / burden like other expenses incurred by him on other factors of production like rent for land, maintenance of machinery, interest on capital etc.

Every body knows that the employees are human asset and whatever the expenditure incurred on it by way of salary or perks, definitely it will come back with attractive returns. In spite of having other resources at optimum level, no employer can produce articles or services without employing human factor.With low pay, we can not expect good work / performance from the employees. So the out put(performance) of an organization will always be depending upon input(salary) bill of such establishment.

Thus, no good employer should feel that the expenditure incurred on employees towards salary / wages would be real cost / loss to the organization and in fact it may be an investment like capital. Further, the salary of an organization will always be depending upon various factors such as capacity to pay, the nature of business, talent available, locality of unit, political and economic scenario of the state which it located etc.

Regards

NVRao

Naidupeta

Dear NVrao and ALL
Actually u give us better information,
BUT may i ask one situation based question?
if one company(X company) offer me for HR job for salary of 8000, and another consultancy (y company) offer me 15,000+,
x company is familiar firm in chennai and all over TN
y company not develop that much that is not company tats home made at office,
in this case what i can select can u prefer me


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