Guaranteed salaries are killing productivity in SOEs – Dr. Donkor

In a recent statement, Dr. Donkor highlighted a pressing issue within state-owned enterprises (SOEs) in Ghana, attributing declining productivity to guaranteed salaries. He argues that the absence of performance-based incentives leads to complacency among employees, stifling motivation and innovation. According to Dr. Donkor, workers are less inclined to strive for excellence when their pay is not linked to their output or contributions.

He emphasizes the need for a fundamental shift in how compensation is structured within these entities, suggesting that introducing performance-related pay could reinvigorate commitment and efficiency. By aligning financial rewards with individual and team achievements, SOEs can foster a more dynamic work environment where employees are encouraged to excel.

Dr. Donkor's insights call for policymakers to reconsider existing salary frameworks in order to enhance overall productivity and effectiveness in SOEs. This approach may not only boost employee morale but also improve service delivery and economic contributions from these vital sectors of the economy.