TS Darbari Blog: Can Business Cut Remote Workers’ Pay?
TS Darbari Blog: TS Darbari says that in India, especially among several Indian companies, it has been a trend since lockdown to cut the workers’ pay who are working remotely. It not only demotivates the employee but also forces the employee to look for another option. TS Darbari says that we all must not forget that life has not become easier in lockdown rather it has become tough for middle-class salaried people. TS Darbari also adds that a person who pays half of his salary in installment and the rest of the salary goes in numerous types of taxes levied upon them to run the economy. CEO and CFO or Board of Directors sitting in AC rooms being paid almost 20 to 30 times more than normal employees can never understand that.
TS Darbari says that while India maybe one of the fastest-growing economies in the world, it is also one of the most vulnerable and severely afflicted economies in terms of economic inequality. The vast discrepancy between the rich and poor has been prominent for the last three decades. TS Darbari mentions that the rich continue to grow richer at a faster pace while the impoverished struggle more than ever before to earn a minimum wage. Now, while the situations is so grim, numerous youth struggle hard to raise their standard of living and live a respectful life. However, the bosses sitting in AC rooms, take decisions about their salaries without considering numerous facts. As compared to US or UK or several other nations, salary in India is already very low, and tax rates are higher.
TS Darbari further says that it’s outrageous that a company is cutting the salaries of workers who are likely to be more productive and less expensive than people working in the office.
TS Darbari mentions that in one 2015 study, Stanford University researchers found that remote employees got 13% more work done, because their home offices were more convenient and quiet and they took fewer breaks and sick days. Research also shows that people who work remotely put in more hours. During the pandemic, Indians devoted 35 -40% of the time they saved on their commutes to doing their jobs.
TS Darbari says that the topic becomes even more important when most of the Indian companies start to follow this trend, and their employees suffer which further results in less productivity.
According to TS Darbari — the key to keep your employees happy is good salary that can fulfill their needs and also give them scope to invest for their future. However, the companies try to negotiate with the employees and lower their salaries which leaves a negative impact. TS Darbari says that we should remember that whenever an employee demands a salary, he/she has some calculations in mind. Employees know what are they going to demand for. They are also scared in case they demand higher than they deserve, they may lose the opportunity. Therefore, TS Darbari believes that when employees mention their expected salaries they know their capabilities, and they demand accordingly. When a company pays lesser than demand, there are chances that the employee will keep on looking for another opportunity, and once he gets the expected salary will leave the job.
TS Darbari says that therefore, if you want to retain experienced and trustworthy employees, pay judiciously. Moreover, employees work more at home than at office, we all know. There are several reports that support this belief. Not only might they be more productive, but they also save the company the expense of office space. Remote workers pay for their workspaces themselves — including not just the cost of the space in their homes but also electricity, air conditioning, Internet service and cleaning. In the aggregate, this savings for the company stands to be vast. Therefore, TS Darbari smiles and says, actually the companies must pay more to the remote workers.
