LETTERS: A recent study by the Workplace Research Foundation found that increasing investment in employee engagement by 10 per cent can increase an organisation's profits by US$2,400 per employee per annum.
Improving wages, workplace safety and incentives has been proven to have a positive impact on workers' motivation and productivity.
Several countries that have taken a similar approach have witnessed significant improvements in the quality of public service delivery.
In 2023, Japan announced the biggest base salary increase in more than two decades.
Thus, Prime Minister Datuk Seri Anwar Ibrahim's recent announcement of improvements to civil servants' remuneration has the potential to substantially improve their performance.
Studies have established that how public sector salaries are distributed will have a significant impact on the success of anti-corruption initiatives.
The new Public Service Remuneration System (SSPA) offers a proportional rise in wages for the support group, and the professional and management group of the civil service. This translates into a smaller income disparity between both groups.
Inevitably, the "incentives effect" of the fear of losing the stability and security of their pay will deter them from the temptations of corruption.
In addition, performance-based incentives will provide a sense of competition to ensure that they will strive to get the skills and competency to meet the needs of people and the economic sector.
Critics have slammed the civil service salary hike as a reckless fiscal move for temporary political advantage.
Undeniably, public sector salaries and pensions have accounted for a large share of the money supply in the macroeconomic cycle and the monetary and fiscal cycles.
On the other hand, competitive salaries will attract and retain talent in the civil service, leading to improvements in government efficiency and productivity.
According to the Economic and Monetary Review 2023 report, Malaysia's economy is forecast to grow between four and five per cent this year.
Recently, it was reported that we are on track to achieve 4.2 per cent growth in the first quarter this year.
Ultimately, the increased salaries demonstrates the government's recognition of civil servants' contribution to the country, in line with the six values of MADANI — sustainability, compassion, respect, innovation, prosperity and trust.
DR SUHAILA HARON
Senior Training Consultant, National Institute of Public Administration (INTAN), Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times