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Should businesses pay people on a structured and distinct scale or allow employees to negotiate salaries?
Companies can save money and time in the long run because employee salaries are never prone to fluctuations or negotiations with employees that could go south meaning that people would not have a reason to exit the business on grounds of pay.
Job stability and income security is a big factor for employees staying in their job. If their income is guaranteed this is one less reason to leave a job.
It saves time for companies since they don't have to continuously need to hire and retrain employees which takes up a lot of
time and money
. Keeping competent and happy staff who know their job very well is optimal for the company.
If people are unsatisfied with their salary then they will leave. Since the salary is not negotiable they know they will not be able to change it. Either they stay unsatisfied or find a job with a better salary.
Employees who have been doing the same job for a long period may leave if their salary is structured. They might not feel valued if they cannot ask for a pay rise after so many years working for a company.