Govt should put in place effective remuneration for all civil servants

Sep 08, 2011

Teachers are the agents of the knowledge we desperately seek for ourselves and our children to fit in a modern society.

Teachers are the agents of the knowledge we desperately seek for ourselves and our children to fit in a modern society.

Teachers are the tools of morals and, therefore, the way they are paid forms an essential foundation for effective management of society and the direction of a nation. Although money may not be the only motivator, too little money considerably demotivates workers and financial reward remains a stronger incentive.

The key question for pricing goods: “How much is the market prepared to pay?” applies just as strongly to remuneration. Government and other employers should ask themselves what levels of basic wages and salaries will attract, retain and motivate people of the caliber required.

The Government and companies that care about the quality of productivity should discover competitive levels for basic pay so that they can aim towards the upper limits for their work force.

Extra pay for special achievements
The simplest form of payment by results (PBR) is piecework. Employee gets a fixed sum for each unit produced.

In theory, this gives the employee the best incentive to maximise output. In fact, employees tend to put a ceiling on their earnings and thus on their effort. In sales, for example, commission can make up a very large proportion of total pay.

In many cases, the PBR share of remuneration may be less than necessary to add to any real incentive. Constantly, the Government should revise any kind of PBR system that it should not overpay for the output or getting less output than it requires.

Paying bonuses selectively
The Government and companies should avoid giving automatic blanket bonus to employees; they will come to take the annual bonus for granted as part of their basic income.

Bonus schemes can operate in any of the three levels: company, team or individual. Ideally, if a company, or a Government department does well, the individual gets a percentage addition to the pay, and the same principle of PBR applies when an employee’s team exceeds its targets. No extra pay should be made for sensible objectives.

By that arrangement, the Government can act fairly to the teachers, doctors, policemen, army and other professionals who possess special training. Teachers in particular must possess academic qualifications and are the custodians of the national image for morals and must demonstrate personal effort to produce outstanding results not usually required for politicians.

Optimal pension schemes
Fringe benefits have become much less effective financially in many countries because they attract tax bracket creep.

Good pension schemes have become more attractive whenever state-funded provisions have fallen. It is a soft landing for social reformers and other international development effort for income redistribution.

The same applies to medical insurance; the knowledge that the Government or a company cares for its people in sickness, health and old age is basic yet a very powerful factor. Other benefits such as cars, education motivate employees and improve their lives.

The net results from better remuneration scheme is the creation of a loyal, hopeful and happy Uganda work force ready to uphold Uganda motto “For God and my Country”.

Joseph Kasibante
President National Taxpayers Protection Organization

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