I think the keyword "optimal" in your 4th sentence is what he meant.
There is an old saying that "You should pay employees enough so that they don't have to worry about making more money, but not enough so that they won't have to continue working."
*edit: One thing to keep in mind is that everyone is not out to do the best job they can, and it is difficult to determine this until after you have worked with them for a while.
There is an old saying that "You should pay employees enough so that they don't have to worry about making more money, but not enough so that they won't have to continue working."
*edit: One thing to keep in mind is that everyone is not out to do the best job they can, and it is difficult to determine this until after you have worked with them for a while.