Some of the basic lessons is HR management tell that the employees expect three needs to be full filled by their employer. Rather than saying three needs we should say a pyramid of needs. Because unless one need is satisfied he doesn’t think of the other need but if the bottom need is specified he starts expecting the next thing.
These three needs are respectively BASIC NEEDS , EMOTIONAL NEEDS, SELF REALIZATION NEEDS in that order of priority. The commitment that the employee shows towards his work depends upon the extent to which his employer satisfies his needs in that order.
The gardener in a IT company earns 3k a month while a junior sw developer earn 20 to 30k a month. This is because the gardener has a problem for survival his immediate need is to feed himself and his family. That is not the case with sw developer, if he is offered 3k a month he will join some other company or sit at home. The gardener cant afford to do this.
Since the basic needs (food clothing and shelter) are met the sw developer now has emotional needs to fulfill. He expects that his colleagues should respect him and value him. His good work shuld be appreciated. He is scared of getting scold. If his manger insults him he will feel bad and his commitment to his work will reduce. But if everyone respects him. if they appreciate him his commitment to work increases. But the gardener is getting 3k with his basic barely met he doesn’t expect respect from any one. He will chose extra 1k to respect any day. However the sw developer will not mind loosing 3k is he is promised more respect and a higher position.
Most of the people are able to meet only these two needs in their life. The souls that can get even their third need satisfied are very few. Vikram Pandit recently took over as a CEO of CitiGroup a bank in total crisis. Who will like to manage a sinking ship ? and why? Its because he would love to prove him self. He wont mind even if he is not paid properly or if he has to pass many sleepless nights but ‘its the self realization’ thats gonna drive him.
Same is the case with Laxmi Mittal. What he got in inheritance was some near bankrupt companies. He could have demanded for more but he went ahead to create his own empire. Why narayan murthy sold his wife’s jeavelary is just another example.
So for a company that expects his employees to show commitment to work well beyond the expected it is necessary that they pay their employees lot more than they need to.
What i have wrote here is the general trend in human beings. There are people who value self realization to everything else. Best examples are artists and poets. They will stay hungry and choose to live a life of destitute for their peace of work.
That explains why people in software industry or doctors are paid more. Because these professions require more commitment. And why US engineers are paid 10 times more than their Indian counterparts? Because the basic needs of Indian engineers are pretty low. With US engineers you have to pay them more for their basic needs and hence to ask for more commitment.