A zero wage increase again essay

A zero wage increase again?


Institute Of Affiliation



My Approach

If I were in the position of a mark, I would probably have asked to issue a pay rise to the company’s most deserving employees. By implementing the suggestion brought to my attention by Aaron, the accountant, the company did not have extra income to spare. It would be demoralizing for the company to end a third consecutive year without issuing a pay rise, which could directly affect its production. Since selective rewards would raise concerns among the staff, it would be essential to counterbalance discontentment. The best counterbalance would be to issue the rewards in liaison with stern disciplinary action. In my personal opinion, the best disciplinary action would be to identify the employees who are a liability to the company and let them go, and use their incomes to add to the rewards issued. This is because a person like Dougie did not add any value to the company, and it is illogical to keep them on the payroll. This action would create a company culture where the best-performing workers are rewarded for their service to the company and underperformers are reassessed. This will encourage employees to be competent and increase the company’s production, which will reflect in the profits.

Pros and Cons of Each Choice

Before mark arrives at a definitive decision on how he should handle the situation, I would be prudent to understand the pros and cons of giving increases to all personnel, to no employees, or just to those who earn it. For example, in Mark’s situation, if he chose to issue all employees with a wage increase, he has to pay attention to some considerations. For instance, the action might help improve employee morale, reduce pilferage, and increase dedication to their duties. However, the action could be counterproductive since hardworking employees would be demotivated because even those who did not put any effort are rewarded. Subsequently, the staff’s zero wage increase would not be received positively since and might lead to a mass exodus since employees need to experience economic growth (MacMillan, 2011). The positive aspect of the zero wage gain is a financial strain on the company since the savings would productively service the company. Finally, if mark chose to reward only the deserving employee’s other employees might express their concerns and halt normal business activities demanding their right to a pay increase. Alternatively, the choice might motivate the staff to work hard to get an increase the next year.

Alternative Incentives

Apart from issuing wage increases, other methods can be implemented to appreciate the company’s top-performing employees. Mark could appreciate the employees by annually recognizing the best performers and ensuring the recognition is accompanied by other benefits like additional paid vacation dates. Mark can make sure that he throws a party for the top performers to make them feel appreciated. Mark could also issue the best employees more flexibility in their duties by allowing them to conduct themselves at their discretion towards achieving their goals.

How to Handle Underperforming Employees

Mark should set up a system to help underperforming employees improve their productivity by assessing the reason causing them to produce low-quality results and issue them with vital goals and ultimatums. Mark should improve the working conditions, which might be a factor for their dismal performance and motivation to work. If an underperforming employee does not improve over the agreed timeline, they should be released from the company to create room for more talented recruits. Partnering low performing with the best performers can help improve their productions.


MacMillan, K. (2011). A zero wage increase again? (9th ed., pp. 160-164). Ivey Publishing.