Salaries in the public sector

There were two, not necessarily unrelated, news items published late last week in the Guyana Times daily: the call for a 25 per cent wage increase for public servants (among a host of other benefits) and the report of another policeman caught in a crime. The foregoing, placed within a general perception of widespread corruption at all levels of the various governmental services, brings to the fore the question as to whether raising the salaries of governmental workers will raise their performance while simultaneously, reducing corruption.
It is generally assumed that the performance of any employee (public or private) is related to their compensation level. Based on that logic any sensible government would need to give priority to the issue of pay. There is, however, a counter proposition that monetary rewards to public servants, in and of itself, cannot act as a motivator to maintain and improve their performance.
Generally there are two theoretical trends on the subject of employee motivation. The first trend argues that man is an economic animal who is motivated by material rewards. His effort will depend on the level of compensation; therefore, employers should pay their employees in accordance to their level of effort. The one who works harder should be paid more.
This approach has been criticised as being too mechanistic and that humans are motivated by a wide range of factors – including ‘higher order’ needs – other than survival.
In a critique that might resonate in Guyana, some propose that pay remains an essential element in satisfying basic needs for most people. In societies where poverty is endemic and few people ever reach the self-actualisation zone, material rewards are an important/ essential element in motivation.
From the foregoing review of motivation theories, pay, and performance, there is consensus that pay is a critical, but not a sole determinant of an employee’s motivation to work and perform. In Guyana we have to ask if the fixed public sector ‘pay grades’ are not demotivating for some employees? We have to concede however, when an employee is paid a wage which is inadequate to meet basic needs and does not have the option of the opting out of the job, he/she will tend to adopt deviant work behaviour.
And this brings the issue of what is referred to as “bureaucratic corruption” to the fore. This refers to the acceptance or extortion of bribes, embezzlement, or the illegitimate or illegal use of public resources by low-level government employees.
Anecdotal evidence suggests that this phenomenon is rampant in Guyana. In addition to inadequate pay and poor working conditions, rigid and bureaucratic rules and regulations which often lack clarity; unregulated discretion which provide opportunity for its abuse; loopholes in the existing legal and regulatory framework making compliance difficult, have also been blamed for corruption.
There must also be a demand by the government for more qualified and better performing government workers to go along with the demands of unions for higher pay scales. Salaries, for instance, have risen considerably in the last two decades without a commensurate improvement in performances.
In our considered judgement, we could give higher salaries if the public sector employment is lowered by obtaining greater efficiencies through a combination of more qualified workers and greater use of communications and computer technologies. But corruption will only drop when even these workers regain the spirit of true “public service”. Where is the old spirit of nationalism?
There were two, not necessarily unrelated, news items published late last week in the Guyana Times daily: the call for a 25 per cent wage increase for public servants (among a host of other benefits) and the report of another policeman caught in a crime. The foregoing, placed within a general perception of widespread corruption at all levels of the various governmental services, brings to the fore the question as to whether raising the salaries of governmental workers will raise their performance while simultaneously, reducing corruption.It is generally assumed that the performance of any employee (public or private) is related to their compensation level. Based on that logic any sensible government would need to give priority to the issue of pay. There is, however, a counter proposition that monetary rewards to public servants, in and of itself, cannot act as a motivator to maintain and improve their performance.Generally there are two theoretical trends on the subject of employee motivation. The first trend argues that man is an economic animal who is motivated by material rewards. His effort will depend on the level of compensation; therefore, employers should pay their employees in accordance to their level of effort. The one who works harder should be paid more.This approach has been criticised as being too mechanistic and that humans are motivated by a wide range of factors – including ‘higher order’ needs – other than survival. In a critique that might resonate in Guyana, some propose that pay remains an essential element in satisfying basic needs for most people. In societies where poverty is endemic and few people ever reach the self-actualisation zone, material rewards are an important/ essential element in motivation.From the foregoing review of motivation theories, pay, and performance, there is consensus that pay is a critical, but not a sole determinant of an employee’s motivation to work and perform. In Guyana we have to ask if the fixed public sector ‘pay grades’ are not demotivating for some employees? We have to concede however, when an employee is paid a wage which is inadequate to meet basic needs and does not have the option of the opting out of the job, he/she will tend to adopt deviant work behaviour.And this brings the issue of what is referred to as “bureaucratic corruption” to the fore. This refers to the acceptance or extortion of bribes, embezzlement, or the illegitimate or illegal use of public resources by low-level government employees.Anecdotal evidence suggests that this phenomenon is rampant in Guyana. In addition to inadequate pay and poor working conditions, rigid and bureaucratic rules and regulations which often lack clarity; unregulated discretion which provide opportunity for its abuse; loopholes in the existing legal and regulatory framework making compliance difficult, have also been blamed for corruption.There must also be a demand by the government for more qualified and better performing government workers to go along with the demands of unions for higher pay scales. Salaries, for instance, have risen considerably in the last two decades without a commensurate improvement in performances.In our considered judgement, we could give higher salaries if the public sector employment is lowered by obtaining greater efficiencies through a combination of more qualified workers and greater use of communications and computer technologies. But corruption will only drop when even these workers regain the spirit of true “public service”. Where is the old spirit of nationalism?