Fayol is of the opinion that the employees should get a fair remuneration so that the employees and the owners find equal amount of satisfaction. It is the duty of the manager to ensure that employees are being paid remuneration according to their work. If, however, they are not paid properly for their work, they will not do their work with perfect dedication, honesty and capacity.
As a result, the organisation shall have to face failure. Proper remuneration depends on some factors like the cost of living, demand of labour and their ability. Fayol feels that in order to motivate the employees, apart from general remuneration, they should be given some monetary and non-monetary incentives.
For example, suppose that the things are getting dearer and dearer and the company is getting good profits. In such a situation, the remuneration of the employees should be increased even without their asking. If this is not done, the employees will leave the company at the first opportunity. Expenses shall have to be incurred on new recruitment which shall bring loss to the company.