It's an integral part of the system.
Your machine has 16 GB of memory. Your kernel_task consumes about 1.4 GB.
This is fine. Your memory pressure is in the green. It will likely stay that way for years of use--
unless
-- You use Adobe products, which, under certain conditions, can exploit multiple gigabytes of memory to speed up operations
-- You use virtual machines, which can be configured to take 4--8 gigabytes for windows/linux etc...
-- A application leaks memory, in which case adding more memory will only delay the inevitable crash.
Your machine is programmed not to waste memory.
Free Ram is wasted ram. Why not use it to cache frequently accessed files?
If a program needs to use the memory occupied by the cached files, the some of the cache is discarded. (This means that if the file is needed again, it's read from the SSD/hard disk, which is slower than using RAM)
If a program needs to use yet more memory, some of the other applications will be first compressed, or swapped to disk.
So I could be running four or five programs, each with a memory footprint of four or five gigabytes (already rather large, as far as mac applications go) on a 16 gigabyte machine, and I might notice a minuscule delay when switching amongst them.
I'm not going to get this sort of dialog unless one or more of those applications is demanding a lot more memory than that.
Look at Memory Pressure. If it's green there's nothing to worry about.
The days of upgrading RAM for that little bit of extra speed boost are essentially over--unless you know that a specific application can definitely use it.