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Research: why people are ready to receive less in social projects

If you need the best employees - get ready to pay the best salaries in the market? A recent study by the State University of Illinois and Oregon showed that this is not entirely true: sometimes employees with a salary below the average market show better results than those who were paid above the market, even if they did the same job.

Previous similar studies have shown that people can accept lower wages if their work makes the world a better place. The American Association of Accountants has revealed how companies get better results from employees at lower costs:

First, below-market wages screen out candidates for whom money is most important. Consent to a lower salary indicates that the candidate’s personal goals coincide with those of the company.

Secondly, such employees feel that they are making sacrifices for the common good. They believe that the company receives money to achieve its lofty goal.

Thirdly, low wages allow employees to rally, opposing themselves to the rest of the world, which allows teams to interact more effectively.

In order to get such employees, a company must meet four criteria:

A true social mission. The inspirational speeches that any organization has will not work. Employees must see and believe that their company is making the world a better place.

Salary transparency. Each of the employees should know how much colleagues earn, otherwise someone in the company will consider that he receives too little.
This item also applies to managers' salaries.

Common problems. There should not be separate groups of employees who are deprived.
No one will work more for less, seeing how the CEO receives huge bonuses and flies around the world on a business jet.

Salary at least in the amount of the real cost of living. Employees should have enough money for their basic needs, otherwise they will leave for a higher paying job.

The paradox turned out: if your main goal is to increase profits, this method of reducing costs will not work. It will work only if everyone is confident and sees that the results of the company’s work are more valuable than its lost profit.

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