There's nothing more frustrating than work done poorly, no matter how little you pay for it. If I were a boss, I'd hire experienced workers at a higher salary to avoid extensive training and expensive errors and to ensure a higher quality output.
I've experienced the sting of a poor salary for poor work, and I've also been bitten, having occupied the lone position of expert. And from this I have accrued the knowledge that inexperience, while cheaper from the start, ends up costing more as necessary training, needless errors and obvious fixes pile up. This cluster of experiences creates uncertainty and disables the whole's ability to progress as one team. Since errors and time-consuming training create lower efficiency and are hallmarks of inexperience, hiring experienced employees works to cut costs and boost production.
An analogy I might use to illustrate my point is that of shoes. I've paid for cheap shoes and mildly expensive shoes. The latter always lasts several years. The price-per-wear of the more expensive shoes is cheaper, and these inflict less damage on my feet. Clearly, it's important to protect our feet, and buying expensive shoes is a method many adopt to save later trips to the podiatrist. As to how this applies to workers, a higher quality output is afforded a company whose workers are satisfied and want for nothing. If I were a boss, I'd make sure my workers had great shoes and healthy feet, in addition to a fair and progressive salary.
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