1/28/2012

How to justify high pay

My human resource experience apparently has gone out of date as far as justification for pay or higher pay is concerned. Let me just recall some of the basic premises in designing the compensation package for employees. HR will normally look at the job specs, the qualifications needed, the skill, risk involved if applicable, health hazard, even look at environment. Then HR will mix these with the incumbent’s qualifications and skill, add in market comparables, stir them thoroughly in a pot, remove the flotsams, and there we have it, a pay package for the various jobs.

Today it is more complicated and complex and a totally new dimension. I am told that corruption is now a factor to be added in the pay package. There are a few variations to this. One is if other people are corrupt and the total income is more than their actual, this must be taken into account, eg the opportunities to receive bribe or under table money, to gain from issuing of licences or approvals. The other aspect is the infamous notion that since people are likely to be corrupt, let’s pay them upfront so that they need not be corrupt anymore.
Revolving door? I just heard of this new phenomenon. In short it is like jobs laying in waiting for top people who left their offices. The most common quoted examples are the American political leaders who have high paying jobs waiting for them after their terms in office. Actually in my time, or even today, this is nothing new. The top dogs are in demand when they quit their jobs. Many offers will come in from organizations or job hunters waiting in queue. Why should this be a factor to use to mark up pay of incumbents, I really dunno.

I am also told that if other people can go on lecturing circuits and collect millions, this is also a factor to consider. Also, along the same line of argument, people who can write books and sell because their country’s readership is big, and people like to read what they write, this can also be a factor to consider in working out a pay package. The reference point is always some American Presidents. I am just wondering what kind of conceitedness and arrogance would dare one to compare with American Presidents.

Oh, another thing, when one engages an employee, one must make provision for his retirement or his opportunity cost for coming on board. If he will lose out in terms of skill, seniority or contacts, this must also be compensated in the whole pay package.

The golden handshake is also quite a norm now for senior employees. Now this is fair as no one would want to move from their comfort zone to try out something new. This could be another substitute for the above. There have been many instances of great talents receiving a big payout for doing badly on the job or not even starting on it.

The most troublesome one is sacrifice especially in public service. How much to measure sacrifice? This is very tricky, trickier than trying to compensate for the temptation to corrupt. How to value what a person is sacrificing, family time, quality time with children or grandparents etc etc. Everyone it so family oriented. Another quality time which is ominously absent is time with mistresses or girl friends. But this is noted I am sure. And being ridicule in public forums and cyberspace surely command quite a price too.

Another thing to consider is to motivate the top management with a carrot dangling in their face. Do good work boy and the carrot will be yours. Blimey, top management needs additional carrot to do their very best. If not, even with out of this world salary, they will slack and not do their best. Is this motivation thing going a bit too far? In all my HR time, I have never doubt that the top management, with or without the carrot, will be there to do their very best, to lead by example. If their leadership example is to do mediocre work unless the carrot is big enough, they should not be hired in the first place.

I think I will be quite lost if ask to do the job again. I am already feeling inadequate. This will require new skills and mindset from the HR profession to be equipped to do a proper job in view of the new challenges and new social norms. Luckily I am no longer in the profession. I am sure I have missed out quite a lot of the new factors that I don’t even know.

During my time, HR’s job was much easier. You interview the candidate, lay down the package without having to worry what happens if the candidate decides to quit later. The responsibility is to offer the candidate a suitable package, agreeable by both parties there and then. If there is a separation for whatever reason, the candidate would have to look for a new job on his own merit. And that is a non issue as the candidate should be good enough to do that with his qualification and experience. The candidate is always a top dog or else he would not even be considered. Don’t they have any confidence in themselves to land another equally big paying job?

1/27/2012

Disband all govt service organizations if….

Medical services, housing, education, public transportation, etc, are normally provided by the govt as institutions to serve the people. These organizations were set up using public funds to provide a cheaper alternative to their private counterparts. They have to be cheaper and decent enough to be of any use to benefit the people. They are the reasons why there is a govt and why people have to pay taxes.

Can the people accept the services of public institutions like hospitals, transportation, housing and education to be more expensive than private institutions when the former is fully paid by the public while the latter were established by private funds? The people should scream foul even if they are priced the same or slightly cheaper. It must be much cheaper as they are built using the people’s money. A large part of the cost is already paid by the people themselves. Bad or poor quality service of such institutions is not acceptable and might as well save the money if they are meant to be that way.

Can you believe it if such services are charged the same or similar as the private sector? If they do, they should be disbanded or sold to the private sector and the money be returned to the people. The govt should not be allowed to set up public service institutions with public money if they cannot charge cheaper than the private sector with privately sourced money.

It is simple economic reasoning and justification. It is common sense. Using public money to set up public institutions is like having them for free. And to charge near the same rate or more than the private sector is nonsense and unacceptable.

It is time that the govt reviews all the public institutions that are not competitive vis a vis the private operators, stop providing them and lower the taxes on the people. Let the private sector run them using private money. Public institutions that cannot compete with private institutions on better and cheaper services have no economic reason to exist. It is actually a waste of public fund and tax payers’ money.

Is sexual misconduct a seizable offence?

The two senior civil servants were reported to have been arrested and released on bail. So far most of the reports are highlighting their sexual indiscretions with the same woman and with some inkling on the awards of contracts through tenders. As far as I know, sexual misconduct is not a seizable offence. Correct me if I am wrong. It may be conduct prejudicial to the good image of an organization and may lead to a dismissal or demotion, definitely no arrest is warranted.

Why were the two men arrested? I think the more serious offence is money related, some kind of corruption. Can’t imagine anyone being arrested for sexual misconduct. I think Changi would not be big enough to accommodate them all.

Poll on new minister’s salary

The poll has ended and 180 participants cast their votes. 3 said yes, 173 said no and 4 were unsure. The final result is that 96% was against the salary package despite it being supported and approved by PAP.

What to make out of this little survey? One thing, the participants are serious and thinking individuals and probably reflective of what the educated and informed Singaporean’s thinking. It is beyond any doubt that the people do not agree with the huge pay for ministers after all the reasons given. I think they are not against paying the ministers well, but what is being paid is still incomprehensible and apprehensible.

Did the PAP really have the blessing of the people by voting for their pay package in Parliament? It is obvious that the people and the PAP are having different dreams, one a frolicking wet dream and the other a nightmare.

I doubt the PAP will do anything to change what has been approved by them in Parliament and will continue with the new pay. They will take it as legally approved and thus there is nothing wrong to it. If the series of misfortunes, corruptions, flaws, flaks, faults, mistakes and acts of God continue to befall this little piece of rock, the big salary will weigh down heavily on their neck comes next GE.

The political price for going it alone without the blessing of the people is high and may be critical the next time round. This time the people is not with the PAP on this salary package. Perhaps, or maybe this little poll is not really representative of the feeling of all Singaporeans. Well, why don’t the authoritative ST with its wider reach, conduct a bigger poll to assess the pulse of the people on this same issue and give a more meaningful feedback to the PAP? Maybe it is better not to know the truth, just bury the head in the sand and all is well.

An intelligent way to fight corruption

Every country is faced with the disease of corruption and finds their own ways to deal with them. The easiest and quite effective way, in case the problem is too big, is to simply behead them when caught. For a big country like China, they have yet to find a better way to deal with corruption. India, an equally big country with equally big corruption problem chose a diametrically opposite way, to live with corruption. And this is a method that many third world countries have adopted. It also suits the power of the day, to share in the corruption and get rich as well.


In between these two, there are many different models, with law enforcement and anti corruption agencies playing their part. But all are destined to fail as they go against the grain of being human, human nature and human greed. As such, even the anti corruption agencies ended with corruption in their own ranks.

Human greed is just another desire like sex, hunger and thirst. It is part of human nature. Once this is acknowledged and accepted, it is easier to deal with in a more effective, efficient and humane way. Don’t treat it like a disease or a crime. Treat it like a business, in economic terms, a human want, a desire to be satisfied at a price.

This approach is the essence of the Singapore way to manage corruption. Accept that every bean is corruptible at some time, at some place, at some price. Satisfy this want, this desire, and the urge will be smothered. After a hearty meal, after an orgasm, the desire to eat or to have sex is gone. But prepare to feed the desire again when it arises.

The high pay to manage corruption is a brilliant and humane approach to tackling the problem of greed. Oops, shouldn’t call it a problem, it is just a human trait. Feeding the greed does not go against the grain of nature. It is living with nature, living with the weaknesses of being human. No need to put people behind bars, or behead anyone. And by paying to quench the thirst, everyone is happy, the payer and the recipient. And with more money in circulation, it is also good for the economy too. It lubricates and makes the country more prosperous, can buy big cars and big houses, making the GDP number better looking. It also creates jobs, especially services.

It is a unique way to deal with the oldest disease of human beans. And it works, and is good for everyone. Actually many countries are also doing it, except illegally. By making it legal, crime rate also goes down. People who are corrupt are just succumbing to the temptation of the flesh. Send them to a half way house for rehabilitation.

It requires exceptional talent and intelligence to see the brilliance of this approach to managing the human desire of greed. And it requires exceptional intelligence to truly appreciate it beauty.

I think I may submit this paper to the UN for consideration. May even get a Nobel Prize for championing human rights. But I am only stealing the credit. This is definitely not my idea. I am just plagiarizing.