An Economist, Dr Theo Acheampong, has revealed that remuneration for state-owned enterprises workers must be linked to their performance.
Dr Acheampong intimated that the effectiveness of workers of SOEs must be measured and corresponding salaries paid. He explained that if workers and executives are receiving these “good perks on average” which other workers within the public service are not getting, then it’s expected to anticipate a “commensurate improvement in the business profitability indicators” of these SOEs.
“The first principle to state here is that remuneration must be linked to performance. In that respect, if I’m paying you for example, GHC10, 000 to run an operation, then I would expect that at the end of every month or quarter of every year there will be some demonstrable improvement in terms of certain core metrics or indicators that is associated with the firm or the service that you’re providing to me. So, that really has to be the core or cardinal point that we then pivot all our analysis around to get a better appreciation of the context.”
Theo Acheampong
Dr Acheampong highlighted that although he is not against substantial salaries being given to workers of SOEs, a critical look at the 2020 SOE report and report from previous years, make a “sordid reading” as it only reflects the fact that government is paying people without seeing any improvement and performance that should be commensurate with their payment structure.
“I don’t have any issue per se with paying people what the market rate ought to be. Let it also not be misconstrued that we should pay the CEOs of these SOEs a lower amount, no. I think we should pay them fairly. But, we need to demand an improvement in the running of these organisations. If we are not seeing those improvements in the bottom-line financial indicators or operational indicators of these SOEs, then we have to find a way of sacking them or in some instances privatising a number of them as well.”
Theo Acheampong
Dr Acheampong expressed that aside the salaries paid to workers of SOEs, political environment poses a problem to the performance of these enterprises. He intimated that the politics inherent in appointment of the board members of some of these SOEs sometimes creates conflict in these enterprises. This, he explained, goes against the organisation as it is not run “optimally in a way that then ensures that value is being created”.
“The remuneration, I think, we should pay people properly and we demand performance or accountability from them.”
Theo Acheampong
Mr Acheampong’s comments followed Public Enterprises Minister, Joseph Cudjoe’s advocacy for “fat” salaries for public sector workers who perform.
Workers deserve fat salaries
Speaking at a press briefing in Accra on Wednesday, April 27, 2022, Mr Cudjoe revealed that despite being in favour of a substantial salaries for workers, it becomes a problem when the worker fails to perform his or her duties
“Maybe you are talking to the wrong person on salaries when it is fat. I openly declare anywhere that I am an advocate for a good salary and if this is bad tell me this is bad… If the person is performing and being paid a good salary, I would clap for the person. If the person is not performing and taking that good salary, you exact performance from the person because you are paying the person. So, I am a lover of fat salary. You can’t use me to pay people badly, I always speak for people who are not paid well.”
Joseph Cudjoe
Justifying his stance, the Public Enterprises Minister explained that when workers receive good salaries, they are able to cater for their needs and save in the “financial system, then [these] deposits build up in the financial system”.
“[You] give loans to businesses and individuals who need them. So, if someone is taking a good salary, the issue is always whether the person is giving an output that reflects the salary, that is all.”
Joseph Cudjoe
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