40
H.A. KHAN
salaries. For example, a modern family needs computer, television, iPhones, cable TVs, cars, and all the appliances to have what is regarded just a basic living. All these necessities are expensive. The salaries are not keeping up with the necessities of life, and this is a more serious issue in public sector jobs because governments have to increase taxation to fund public sector salaries. In developing countries, the low levels of salaries pressure the bureaucrats to resort to bribes and other types of corruption. Accordingly, increasing the salary may eliminate the propensity to engage in bribes. Under a low salary, the honest bureaucrats suffer from low esteem and morale because they are unable to maintain a decent living. Because of their higher standard of ethics, they cannot take bribes, and at the same time, cannot afford to live a decent life with the government salary. With increasing job opportunities and attractive salary and benefits in the private sector, developing countries may begin to face the same problems like the developed world in recruiting and retaining the public employees. Based on a recent GAO (General Accounting Office 2017) report, the compensation gap between federal employees and private sector employees has widened since 2012. There is an increasing number of Senior Executive Service (SES) employees, who are leaving the government. Based on an OPM survey, 40 percent of the SES employees who want to leave the federal government responded that they would stay if the salary is increased (Corrigan 2017). The governments may consider providing attractive salary and benefits to public servants who serve for a long time. Moreover, the demand for privatization and outsourcing has also led to a diminution of benefits, which were once attractive factors for public service jobs. Compensation must be broadly competitive with that offered in the private sector to attract qualified individuals into public service. However, with growing pressures on a reduced budget, it is difficult to provide a competitive salary and benefits for government jobs. In the absence of a competitive salary, public service can provide other opportunities such as tenure and pensions. With the growth of part-time, contracted, and At-Will employment, the public services lost most of the drawing factors to attract qualified individuals. In this situation, the government can resort to a leaner bureaucracy with the attractive salary and benefits. As a result, those who remain in government services can be satisfied and committed to their jobs. In most countries, grades determine the compensation. However, with the rise of the demands for the specialized employees in different fields, the qualification and experience can determine the compensation rather than the
