When salaries are raised

PRIME Minister Datuk Seri Anwar Ibrahim’s recent announcement that civil servants will receive a pay increase – of 13% beginning in December – has the potential to substantially affect their performance.

A recent study conducted by London-based Workplace Research Foundation reported that, simply increasing employee engagement investments by 10% can increase an organisation’s profits by US$2,400 (RM11,000) per employee per annum. Wages improvement, better workplace safety, and incentives have proven to have positive impacts on workers’ motivation and productivity.