Recently I have spoken to one personnel from the company with really specific production as a result of that fact she has to cooperate with narrowly profiled employees who are very rare. The woman was complaining about the only possibility she has and that is to offer extremely huge amount of money and to believe that competitors won’t be even more generous. When we finished our discussion, I had to think about it. What about human’s values and marginal utility.
Definition:
Marginal utility is the benefit of each additional unit (good, item) at a time. The low of dicreasing marginal utility – with the growth of the consumed volume the marginal utility decrease. The biggest sattisfaction is caused by the first unit, the other is smaller and smaller. The total utility is increasing less and less.
As it is written above endless bidding for new employee does not have such a big impact. The more attractive will be different but required item. To consider what that item can be, it would be good idea to think about the Abraham Harold Maslow‘s teory.
Maslow’s theory
It is usually showed as the pyramid where the base is created by the most impostatnt needs. Up to the top the interest in these thinks grows as much as the needs below are fulled up.
1. Self-realization
2. Need for recognition and reverence
3. Need for love and acceptance
4. Need for security and certainity
5. Basic physiologic needs
If we consider money to be the only tool to keep or gain an employee we will meet his requirements from the first base group only. (physiologoical, safety and certainity). If we focuse on building good atmosphere, feeling of belonging and friendship among the employee. If we focuse on noticing each good result and we will appreciate our emploee, we will give them competences to make an improving changes and to participate in big decisions not even higher salary will be enought to leave your company.
Nela Eršilová