Do Low Wages Affect Job Performance?

Job performance is typically defined as how an employer views the performance by an employee in a particular position of employment. Job performance usually considers such factors as whether or not an employee has—or even can—complete all of their work related responsibilities and duties each workday, the quality of the products or services they are providing, as well as other factors such as how well they interact with other employees or how their attitude improves, or doesn’t improve, the workplace.

There are many factors which have been proven to impact job performance. Personality, illness, abilities, problems at home such as relationship or family problems, as well as relationship problems with other workers in a workplace setting are all factors which are commonly brought up when the subject of an impacted job performance is discussed. However, one factor which is becoming increasingly noticed in the professional world as a factor which does have a noticeable impact on job performance is this: low wages. Although low wages have long been considered a possible factor for job approval—employees, as a rule of thumb, do not approve or enjoy jobs where they are given a low wage—it is only in the past decade that major studies on a low wage’s effect on job performance have been undertaken.

There are three major factors at work when it comes to how low wage can actually affect job performance. These three factors are: anger, stress, and a lowered morale. Stress is commonly experienced by employees with low wages because they are often struggling to make ends meet in their personal life, which means that they must rely on their work to keep them fed and in a house--much less living comfortably or enjoying relaxation or any sort of luxuries. Stress can easily affect an employee and affect their job performance because they often feel frustrated, irritated and depressed over how the low wage is affecting their life.

Anger is another factor of low wages which can impact job performance. If someone believes that they are being paid a low wage and that they deserve more money, they may feel resentful, bitter and angry towards their employer and their job. An angry employee tends to have much lower productivity and even a lower quality of work when compared to employees who are well-paid or employees who, at least, believe that they are being fairly compensated for their work.

Finally, a lower job wage can cause an overall sense of lowered morale in an employee who feels that they are expendable, worthless or otherwise not an asset to the company. Low morale causes a poorer job performance because employees do not feel motivated to produce quality of work and may even feel that their work is pointless.

The key for employers who are hoping to avoid the pitfalls of lower job wages and their impact on employee morale is to ensure that all employees are paid a fair compensation for the work they put into the company. If it is not always possible to give everyone significant raises, other benefits—such as vacation time, company support such as health care or other services—can also lower morale and improve job performance.