i) To increase productivity: When the organization remunerates its employees well, they will have the desire to give the best of their efforts, resulting in increased productivity.

ii) Attract talents: When an organization is noted for remunerating its employees well, it helps in attracting highly talented people to work in that organization.

iii) Cost Control: Remunerating employees well will help the organization to control its operational costs because of the high retention rate of the workforce.

iv) To motivate employees: When employees are remunerated adequately, it signals to them some sense of fairness, which will increase their motivational level to enhance commitment and productivity.

v) Reduces Trade Union Agitations: When employees are adequately remunerated, it reduces the agitations of trade unions in the organization.

vi) Provide economic security: When employees are adequately remunerated, it helps them to gain economic security because they can make savings and also invest part of their salaries to cater for them during retirement.