Factors Influencing Employee Remuneration

FACTORS INFLUENCING EMPLOYEE REMUNERATION ,[object Object]

They can be categorized : External Factors Internal Factors

External Factors to an organization are : ,[object Object]

A low wage may be fixed when the supply of labour exceeds the demand for it.

A higher wage will have to be paid when demand exceeds supply, as in the case of skilled labour

High remuneration to skilled labour is necessary to attract and retain them.

But exploitation of unskilled labour, like, for instance, paying niggardly wages because it is available in plenty, in unjustified.

The Minimum Wages Act, 1948, is precisely meant to prevent this kind of exploitation,[object Object]

Going rates are generally paid in the initial stages of plant operators.

Productivity of labour also influences wage fixation

Productivity can arise due to increased effort of the worker, or as a results of the factors beyond the control of the management, and the like.

From advance technology and more efficient method of production

Productivity has only a subordinate role in wage fixation.

The argument that productivity would increase if it is linked to remuneration is hardly acceptable. ,[object Object]

Many companies include an escalatory clause in their wage agreement in terms of which dearness allowance increases or decreases depending upon the movement of consumer price index (CPI) ,[object Object]

[object Object],We have plethora of laws at the central as well as at the state levels. Some of the laws which have bearing on employee remuneration are : ,[object Object]

Factors Influencing Employee Remuneration

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