Underpaying Staff – One way to guarantee your employees will disengage

It is a fact of life that if a person thinks they are being undervalued (for example underpaying staff), they will disengage from the relationship involved (sometimes it is the perception, not a real thing but effectively it is the same thing).

At People Smartz, as Human Resources Specialist to Business, we get many queries regarding creating committed and engaged employees.

A good example of the threat of “undervaluing employees” came up this week. A client running a business in the health industry inadvertently ended up underpaying staff – all due to the confusion that can occur between awards.

The situation developed because of the different manner of calculating hourly rates for casuals on a Saturday.  The two awards being utilised in the business (the Health Services Award and the Nurses Award) have different ways of doing these calculations and the business applied the method used in the Nurses Award for all staff.  The result – underpaying staff on a Saturday in their reception area.

They now have a group of employees who have are at threat of disengaging.  They will get their back pay but the threat remains.

This could have a significant effect on the business in the future.  Retention of staff may drop, good people may not be as committed and they may lack commitment.

So, our tip this week:

Don’t assume you are paying wages correctly.

Check your rates today, double check the way you calculate penalties, weekends and public holidays and ensure you are looking at the right award.

In other words, avoid underpaying your staff

Not sure how to do this?  We are more than happy to assist you – Email us today if you want more information

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