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Step 1
The constantly changing global environment has forced some employers to reconsider their previously held beliefs concerning efficiency wage theory’s connection with and ability to control unemployment. There is significant data that suggests that the efficiency wage theory has facilitated a societal deterioration and a permanent underclass in some cases due to employer’s refusal to institute innovative revisions to the efficiency wage theory. There are other variables that prove that efficiency wage theory is no longer viable, cost efficient or safe as well. The last point presents employers with a tough decision concerning the future use of efficiency wage theory.
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Step 2
While employers have bought into efficiency wage theory as a cost effective initiative, a meticulous and careful analysis of its theoretical principles will prove that this theory has worn out its usefulness in a world that is ever changing and less forgiving of a nation’s inefficiency concerning matters pertaining to national and international economics. Efficiency wage theory was implemented with the belief that if you pay a worker a higher wage, you will reap the benefits of their best efforts concerning the work they do at a particular company. There is no refuting the fact that in a significant amount of cases, this is true, however, there is no data to suggest that these cases represent the majority of workers in the regional or national workforce of a given nation. In fact, logic suggests that if you resign yourself to one strategy that is geared towards paying a higher wages to a limited amount of people, as a company can’t afford to pay those same high wages to a vast group of candidates from the workforce, a company has limited the strategic options of their company.
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Step 3
The cumulative effect of companies using efficiency wage theory as a strategy is that underclass facilitation occurs in many cases due to a lack of flexibility concerning employers who have ignored the societal and economic costs and deterioration factors concerning these factors. In many areas of a given nation urban styled ghettos are dramatically affected by efficiency wage theory. This leads to crime economic instability in various towns and cities that eventually and or potentially puts the security of states at risk in addition to potentially putting a given nation’s national security at risk. These factors will become more apparent, as the current war on terrorism and the war in Iraq exerts its influence on domestic budgets and initiatives.
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Step 4
Perspective companies limit their ability to diversify and augment weak areas of their company from a talent pool that may work for a reasonable rate. This increases the company’s cost concerning the training of its personnel. This cost factor is compounded in scenarios where a company’s employees leave to work for another company. Employers believe that employees will not leave a company solely because they are receiving a higher than market salary. It is not out of the realm of possibilities that increased wages prepare employees to participate in personal development programs like college and certificate courses that will prepare them to move on should they be unable to make their natural progressions through a professional culture of ‘upward mobility’ at the company’s where they work.
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Step 5
It is startling that employers refuse to dispatch analysts and specialist who can ascertain the mindset that is action predictive concerning spikes and decreases in unemployment that are facilitated and manipulated by the implementation of efficiency wage theory strategies. Has the employer instituted a certificate training program that is cost efficient and based on sound strategy that clearly acknowledges and supports the best interests of both the employer and employee? If not, is this why lower wages led to spikes in unemployment? Does the lack of a viable training initiative like this facilitate a culture of abuse between lower and higher paid employees in addition facilitating a schism between all employees and management? This would be due to the lack of a simple and basic cost efficient training strategy that prepares all company employees for success and giving them all an equal opportunity for success through training that enhances the employee’s competency level and professional development. This type of scenario details how lives can be dramatically affected by inaction by competent professional tasked with protecting the best interests of their respective companies. As I have shown, inclusiveness that is not exhibited through efficiency wage theory is in the best interests of employers. The operational culture of a given company decides what variables will present themselves and when they will present themselves as well. This reality also suggests that some obstacles encountered by employers are self produced due to social and professional neglect of its employees. To ignore this irrefutable data is beyond shameful, as it has major societal implications due to the amount of families that can and will suffer because of the inefficiency of efficiency wage theory.
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Step 6
Efficiency wage theory can be traced to huge human failings that have had a dramatic effect on job applicants. This is due to hiring practices that implement a strategic reduction strategy concerning these same job applicants in order to form, develop and use an elitist hiring model that is a means of dispersal for the non inclusive and suppressive traits contained within the efficiency wage theory structure. These factors have led to the societal decay of diverse regions of America and have also led to economic instability in states and cities. These factors also put America’s national security at risk due to these economics based deficiencies in strategic areas in America. Efficiency wage theory has caused many employers to lose sight of all the peripheral variables that affect America and their personal interest of their company.
