#28 Quotes (5)

     Companies can take care of their employees through a lot of methods such as provide a lot of service and preferential policy, allow enough holiday for vacation and pay generous salary, which is the most useful and substantial. With higher payment, workers can improve their life on their own way. Form the N. Gregory Mankiw’s the Principle of Economics, it points out the benefit with the efficiency-wage.\

“Better paid workers eat a more nutritious diet, and workers who eat a better diet are healthier and more productive. The more a firm pays its workers, and less often its workers will choose to leave; thus, a firm can reduce turnover among its workers by paying them a high wage. When a firm pays a high wage, it attracts a better pool of workers to apply lot its jobs and thereby increases the quality of its work force. High wages make workers more eager to keep their jobs, and thereby, give workers an incentive to put forward their best effort.” (Mankiw 633)

Higher wages is both good for companies and employees. With good payment, the quantity of workers’ life will be much higher since they can spend those extra money to enjoy their life. Workers will be much healthier since they had enough money to prepare balanced diet. In additional, workers with higher salary don’t need to worry about changing to another company in order to get better treatment. Satisfying salary incite them to stay in the origin company. Furthermore, because of the higher salaries, which provide effective workers for the companies; companies with efficiency-wage policy are more profitable.