I remember reading in a National daily about PM’s suggestion to Corporate to rethink regarding payment of high salaries to their Executives.In my opinion this may be based on the feedback that many Government officers, civil as well as from armed forces are opting out of Government service for better opportunities outside.

I am not sure whether such a suggestion coming from the highest level was appropriate? I found this unlike Manmohan Singh’s character, as he is known to be a strong votary of merit and believes in progressive thinking. I fail to understand his logic or compulsion?

Today in Corporate world salaries are on the rise, this is basically to check employees attrition rate as well as aimed at retention of the talent. It is a well accepted fact that salary alone cannot help in retaining “right” type of Executives in Corporate world because work life balance, encouraging working environment, interesting work and fair play also play an important role in keeping attrition rate within a reasonable level. It is also true that besides salary, the other mentioned factors cannot be quantified or totally taken care by framing favourable Corporate policies since retention of the employees to a certain extent also depends on the working relationship between the individuals.

Assuming that other factors are addressed equally well by the various Corporate entities then salary alone can become a clinching factor for hiring and retention of employees.

On the basis of this logic, it is therefore safe to conclude that payment of high salaries by Corporate to their employees is justified as it recognizes their merit as well as their usefulness to the Corporate.

Today by paying high salaries Corporate’s are able to get the best available talent. This alone is responsible for industry’s willingness to go to any length to hire talented people as well as to retain them once hired. Those organizations which do not pay well will naturally have the disadavantage of not getting the best people in their field. It is not very uncommon these days to see HR Managers pushing their case to Senior Management for payment of high salary in order to hire and retain the best, otherwise, “peanuts” meaning low salaries will lead to hiring of “monkeys” mediocre people.