Being an owner of an SSI in a small town I believe market competitive pay doesn’t work much in our case. I may pay an employee more than the market if I am in need of that employee and if I believe that the employee does has the capability & experience to handle the work. In some cases where the employee is less experienced I would pay him below the market rates and would assure him of a pay hike as per his performance. We appoint accountants, production head (operations controller) – though it is not done on a very large scale but we do face a lot of competitions from other small industries in the same locality. We do not go for surveys but we do keep in mind what the other industries in the same area are paying. So for any particular job we look at the so called “market rates”, experience of the employee and my need for that employee before deciding his final salary. Therefore in our case its my need which plays a more important role in deciding whether I should pay the employee as per the market rates or not.
(the author of this post is the owner of a Refractory firm in Jharkand)
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