That's right, I agree with you. Wages indeed greatly affect employee productivity, in fact it can also affect employee loyalty to the company. Because if he feels the wages are not decent, then he will think about moving to another company.Personally i believe the salary of a worker plays a very Important role in productivity. There can only be an increase in productivity when the employee is motivated to work and an employee who is payed well would want to do their best to ensure you as the employer do not regret paying them that amount in the first place.