--- title: Fair pay is a question of measurement date: 2013-03-25T11:08:43Z modified: 2013-03-25T11:08:43Z permalink: "https://grow.ee/oiglane-palk/" type: post status: publish excerpt: "" wpid: 2779 timestamp: 2013-03-25T11:08:43Z tags: - Accounting --- The recent Supreme Court ruling in favor of compatriots working in Finland was covered in the media on both sides of the bay and sparked a discussion on the fairness of wages paid to Estonians. The latter evoked a nostalgic reminiscence of a couple of decades of history, when the incredible hard work, skills, adaptability and a whole chapter of other advantages of the omnipotent Estonian were talked about over the workers of the welfare state spoiled by the pampered welfare state. ###### The result of the measurement depends on the background system "-" Estonians were heroes in the early 90s, according to today's understanding, Estonians who toiled for a monthly salary of a few dozen euros were able to "sell" their work more favorably even if they spent a whole day doing the hourly work of a worker in a neighboring country. The fruitful socialist history, burdened by deficits, had taught people to cope with the means at hand, which added universality to cheap labor. ###### The growth of well-being reduced the advantages The growth of the salary of a good worker has brought us much closer to welfare states over the past few decades. Suddenly, Estonians' more modest vocational education and the skill of combining manual work acquired by their fathers and grandfathers during the Soviet era, which is disappearing into history, became apparent. As a result, we find an employee who creates much less value than a colleague in a neighboring country with modern tools. In the worst case, there have been losses due to incompetent handling of tools or damage to the material. However, the most astonishing fact of all this is that the productivity of a Martian with a lower salary is sometimes so much lower that hiring him is not even worth the lower salary. ##### Fair salary creates advantages A salary related to the value created as a result of work favors competent employees. This way, the entrepreneur actually gets more for his salary costs. Of course, the result of all work cannot be measured in money, but in quite a few cases it works. In short, a company manager with proper accounting, with the support of a competent accountant, receives management information that helps him assess the result of the work of an individual employee or team. He understands the sources of profit and the places of risk of loss, not based on gut feelings but on actual facts. ##### It is still MOST IMPORTANT Just a few days ago I happened to see performance bonuses assigned to employees by the manager, which preferred the department that was performing worse. The reason was that the result was evaluated based on only one parameter, which did not take into account the important circumstances of profit generation. **The most important thing is the availability of the right information in the right volume.** [If you feel that you lack the necessary information or expert advice as an entrepreneur, then contact us.](https://grow.ee/wp-content/uploads/wp-mfa-exports/page/kontakt.md)