Shqipëria Posted on 2026-02-24 14:01:00

Salary increase, is it a productivity "engine"? - Hasalla: Financial motivation, a direct stimulus for employees

From Diamila Leka

Salary increase, is it a productivity "engine"? - Hasalla: Financial

How much does salary really affect labor productivity? This is one of the main questions that is accompanying discussions on the labor market, especially in conditions when businesses face challenges in retaining and motivating staff.

Increasing wages, especially the minimum wage, is seen by experts as a mechanism that can directly impact employee performance.

Gertjana Hasalla, Employment Expert:

"The truth is that after all the discussions we have had about working conditions, let's say that pay is one of the main points that is talked about for employee productivity. It is one of the main points that each of us is concerned about how much money he takes home at the end of the month, so an increase in pay is always a great incentive for employees to become productive. It is not the only incentive, there are definitely other conditions that must be met along with pay, but this change in increase, but especially the change that has occurred with the minimum wage, with the recent increases that have occurred, shows in itself that pay, among other things, is also a main factor in terms of job satisfaction for the employees themselves, but also their productivity."

The argument is that an employee who feels financially valued is more likely to be dedicated and productive at work. However, economists point out that pay is only one link in the chain that determines efficiency at work.

 

 

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