Psychologist Adam Grant Says Paying Employees ‘Extremely Generously’ Can Actually Benefit Employers, Too. Here’s Why.

What if employers paid their workers the highest salaries they possibly could?

According to psychologist and best-selling author Adam Grant, it’s in an employer’s best interest to pay their employees as much as possible — in the form of a high starting salary and raises.

Higher paychecks give workers an increased incentive to stay at the company, leading to better retention rates, lower turnover costs, and a more stable workforce in the long term, he says. Grant frames higher salaries as an “investment” for companies.

“Giving people a raise, and in particular, paying them well—some would even say paying them extremely generously—is an investment in motivation and retention,” Grant told Fortune.

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