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Hidden Benefits of Paying Above Minimum Wage NZ: Investing in Your Employees is Good for Business

There are several benefits to your business when offering wages above the minimum wage in New Zealand (NZ).


Factory workers are vital, productive staff

Factory workers play a crucial role in the manufacturing and production of goods. They are responsible for operating machinery, assembling products, and packaging goods, among other tasks. Without factory workers, many of the products we use daily would not exist.


One of the key reasons why factory workers are important is that they help to drive economic growth and development. By producing goods that are in demand, factory workers help to create jobs, generate revenue, and stimulate economic activity. This can positively impact the local community and the broader economy.

A man using factory machinery
Factory worker using machinery

Moreover, factory workers are important because they help ensure the quality and safety of their products. They are trained to operate machinery and equipment safely and efficiently and are responsible for inspecting and testing products to ensure that they meet quality standards. This is essential for ensuring that products are safe and reliable for consumers to use.


In addition, factory workers are important because they contribute to innovation and technological advancement. As they work with machinery and equipment, they may be able to identify areas for improvement or suggest new ideas for how to streamline production or improve product quality. This can lead to new and innovative products and more efficient and effective manufacturing processes.


Factory workers can be paid hourly wages or receive a salary, and their compensation may be based on factors such as their productivity, the number of units produced, or their level of skill. Factory workers typically work in a physical setting, such as a factory or plant, which can involve exposure to noise, machinery, and other hazards. For this reason, factory workers should be recognised as productive staff members. Factory workers may not require a high level of education, but they often need to be trained in specific skills or tasks related to their jobs.


Office staff are non-productive but vital

In contrast, office workers are typically involved in administrative or management tasks. They work in an office setting and are often responsible for tasks such as data entry, customer service, accounting, marketing, or human resources. Office workers may be paid a salary or an hourly wage, and their compensation may be based on factors such as their position, level of experience, or performance. Office workers typically work in an indoor setting such as a cubicle or office, which can involve exposure to computers, phones, and other technology. For this reason, office workers should be considered as non-productive staff members.


Office staff are often considered non-productive because they do not directly generate revenue for the company. Unlike workers in manufacturing or production, office staff do not contribute to the physical creation of the company's products. However, this does not mean that office staff are not valuable to the company. Office staff are crucial in managing administrative tasks, handling customer service, and ensuring the business runs smoothly. Office workers typically require higher education or specialised training, such as a college degree or certification in a specific field.


Why receptionists and cleaning staff are vital
A lady standing at a reception desk answering the phone
Receptionist answering the phone

Receptionists are often the first point of contact for customers and visitors to a business. They greet them, answer their questions, and direct them to the appropriate department or person. They also manage phone calls and schedule appointments. By providing a friendly and professional first impression, receptionists help create a positive experience for customers and visitors, leading to increased customer satisfaction and loyalty. In addition, receptionists help to manage the flow of people and information within the business, making it easier for other employees to focus on their core responsibilities.

a person cleaning a monitor
cleaning crew

Custodial workers are responsible for maintaining the cleanliness and safety of a business. They clean and sanitise restrooms, break rooms, and other common areas and may also be responsible for cleaning floors, carpets, and windows. By ensuring that the business is clean and well-maintained, custodial workers help to create a safe and healthy environment for employees and customers. This can improve morale and productivity and reduce the risk of accidents and illnesses. In addition, custodial workers help to protect the business's physical assets, such as equipment and furniture, by keeping them clean and well-maintained.


Therefore, it is crucial to consider the overall value that employees bring to the company rather than just their direct revenue-generating potential.


Benefits to your business: paying above NZ's minimum wage

Firstly, it can help attract and retain high-quality employees. By offering a wage higher than the minimum, companies can demonstrate that they value their employees and are willing to invest in them. This, in turn, can lead to a more committed and motivated workforce, improving performance and productivity.


Secondly, higher wages can help reduce staff turnover and recruitment costs. When employees feel well compensated, they are less likely to leave for a job that pays more. This can save the company time and resources that would otherwise be spent on recruiting and training new staff.


Thirdly, offering higher wages can help improve employee morale and job satisfaction. When employees feel that they are being fairly compensated for their work, they are more likely to feel satisfied with their job and motivated to perform well.


Paying wages above the minimum wage can help to build a positive brand image and reputation for the company. By demonstrating a commitment to fair labour practices and social responsibility, companies can attract customers and investors who value ethical and sustainable business practices. This can lead to increased brand loyalty, market share, and profitability in the long term.


Benefits to the employees

Fair compensation provides your employees with financial stability and security. Staff paid a fair wage can better meet their basic needs, such as housing, food, and healthcare. This can help reduce stress and anxiety related to financial insecurity, positively impacting their mental and physical health. Fair compensation can also enable your employees to save for the future, such as retirement or emergencies, providing a sense of security and peace of mind.


Moreover, fair compensation can give employees a sense of value and respect. When staff are paid a fair wage, it demonstrates that their time and effort are valued and appreciated. This can increase job satisfaction and motivation, as workers feel their contributions are recognised and rewarded. Fair compensation can also help foster positive relationships between employees and management, demonstrating a commitment to mutual respect and fairness.


Additionally, fair compensation can provide employees with opportunities for personal and professional growth. When staff are paid a fair wage, they may be more likely to invest in their development by attending training or pursuing education. This can enable them to acquire new skills and knowledge, enhancing their job performance and increasing their value to the company. Fair compensation can also provide workers with opportunities for advancement, such as through promotions or increased responsibilities, leading to greater job satisfaction and career growth.


Finally, offering higher wages than the current minimum wage can help to improve the company's reputation as a fair and respectful workplace culture as a socially responsible employer. By demonstrating a commitment to fair wages and employee well-being, companies can build a positive brand image that can attract and retain high-quality employees, customers and investors. Fair wages also stimulate economic activity, while building a positive brand image and reputation.

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