Why everyone should have high salaries

Article I asked a friend of the owner of the company: why don't you pay decent salaries to employees? The answer surprised continues to resonate with readers. Almost 90% of the comments in it are well-reasoned. I read most of them and answered where I saw fit. Of course, I came to conclusions based on such statistics, the opinions of readers (more than 10 thousand. comments). These are both the opinions of employees and those of entrepreneurs, owners and directors.

I will skip the details and move on to the most important conclusion. It is necessary to pay high, decent salaries to all employees and employees. High wages should be paid not only to the management team and top managers, but even to loaders, low-skilled personnel. It is clear that it should be different (possibly at times), but even a simple worker from the assembly line should be on his own s / n provide everything you need for yourself, your family and save something monthly for rest or other goals. This is both a motivation to do their job better, and a tool for economic growth.

Not everyone understands that salaries are directly related to the economy. If there is an opportunity to buy only groceries, a person will never update repairs or furniture, buy a car or improve their housing situation. His funds will not flow to others, and from there - further along the chain. If the final private consumer does not have funds, the economy is half-dead. An economy based on the supply and services of organizations and businesses looks like a machine that nobody needs to work. Rather, it works for the benefit of several thousand owners of these businesses. And the goal of the entire economy is to ensure a comfortable standard of living for all citizens of the country.

If there is inflation and there is no indexation of already low wages, at least in the amount of inflation, sooner or later the population will become destitute. Entrepreneurs wrote in the comments that it is very difficult to find a specialist. Nobody goes to the existing salaries. And those who get a job do not work long. So pay the workers so that he treasures this place! Cultivate a specialist, raise his level of skill, motivate, so that this translates into the result of his work.

The second objection of entrepreneurs is high taxes. Yes, there is. To pay a lot, you need to sell a lot, have a large turnover. But here is a vicious circle: low wages - low demand and low turnover, which leads to a reduction in the wage bill. Many small shops, organizations cannot pay employees high salaries, businesses are on the brink of profitability. 80% is trade. If the payroll is more than 50%, then it is best to dissolve everyone and work alone. But the mentality of many is lordly: to hire laborers for beggarly salaries and sit to manage them. Such a business, I think, is not needed.

It turns out that this mechanism in economics was understood in the West 100 years ago. This is what Henry Ford thought as he embodied the assembly line principle of assembling his cars:

Salary is the profit paid in advance! Do you think Ford was unique in his idea that you need decent salaries for a normal life and the existence of the economy? No, here is the quote from the founder of Bosch:

We can say that this is a squeeze of meaning in one phrase without explaining the mechanism. I think there were many such businessmen with such views in the West. These are the examples that I once came across. Judging by the salaries in Western companies operating in the Russian Federation - such views are there and now. Their business is brought up on understanding the mechanism of domestic consumption, and not on siphoning resources out of the country as cheaply as possible.

I have a question: do the people above understand this in our country? Judging by the fact that the Ministry of Finance considers a large number of jobs and employment of the population with a minimum of unemployment to be a success in the economy, then it is not. What's the point if new jobs are taken by guest workers or simply residents of the country who have nowhere else to find a job and they will be forced to work, albeit in factories, but for low wages?

I will give an example of one large and over-profitable enterprise. The Electrochemical Plant (ECP) is located in Zelenogorsk (the closed city of Krasnoyarsk-45 of the Krasnoyarsk Territory). The enterprise produces isotopes of chemical elements and fuel for nuclear reactors. One of the five leading enterprises in the world in terms of their production. The plant previously actively helped the city; it had related enterprises and an agricultural producer on its balance sheet. The total number of employees in the main production is several thousand people. And taking into account related industries - dozens. The city itself is about 70 thousand people. human. In general, this is a city-forming enterprise in every sense.

When I got to Zelenogorsk for the first time (early 2000s), I had the impression that I was in the USSR. Well-groomed streets and lawns, painted houses. It gave out only the number of right-hand drive foreign cars. Because for high salaries, workers were one of the first in the region to order imported cars from Japan at auctions. Average salaries at the ECP were almost twice as high on the edge. All thanks to Anatoly Shubin, the head of the enterprise.

But after 2008 the Moscow leadership has thrown off everything that does not belong to Rosatom and reduced the number of employees in a few years to 2,000 people. (for 2010 there were about 6,000 people). Salaries have become commonplace. Link: https://dela.ru/news/188294

And today the city has turned into a city of retirees. Yes, it is, by tradition, the same clean and well-groomed, but the dream of young people to leave there, tk. the ceiling of salaries is on average 25-30 thousand

Now attention! For 2019 ECP's revenue was 15.56 billion rubles. rub. Link: https://ru.wikipedia.org/wiki/Электрохимический_завод

I don't know what the profitability is in isotope production. But, I think, it does not exist below 30%. If so, then 5 mln. rubles / year is earned by an enterprise of 2,000 people. As usual, the management gets high salaries, and ordinary workers get the market average. And, after all, there are hundreds, if not thousands of such enterprises with super-profits throughout the country. Rosatom is a state-owned company. But with a market mindset, like everyone else. Would make salaries worthy of our time - the rest would watch and catch up, the labor market would change. This would motivate the growth of wages and the economy.

Well, the reader will say, let's say everyone began to receive high salaries. But it will also accelerate inflation. The mentality of the Russian market is such that if they are actively buying, then prices should be raised. Fuel analogy. And here it is necessary to regulate prices by the state. There should be no price increase of more than 3% per year. And prohibit monopolies from raising prices or more than 3%.

Another problem is the outflow of finance from the regions. Sometimes even offshore (where large grocery and other chains are registered). About this article: Territory development method of Gleb Tyurin. Or how to revive a Russian village

Output: the economy and various enterprises and businesses must be socially oriented. Create conditions not only for your enrichment (or your management), but also for decent wages for employees. This is also a guarantee of economic development. If we remain to live in capitalism, then it must have a human face.

What to do, how to achieve this? In my opinion, we need really independent trade unions and influence on the management of the enterprise, checking the activities of the organization by an audit of those who wish (workers). How it happens in the SNT of summer cottages and other villages. Thoughts were here: Why aren't decent salaries paid? Opinions are divided, but there are options for resolving the issue

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