Question

Suppose you are the employer of a number of workers. What type of wage structure would you pay them? What would your pay scheme's characteristics be? Would wages be adjusted over the course of a labor contract?

Answer 1

Wage Structure:- It is a ladder within a company that sets the amount, each level of employment is paid. Lower-Level employees are paid less and they may get an hourly wage as opposed to a set salary.

There are 5 types of wages that employees get;

1. Minimum Wage.

2. Living Wage.

3. Prevailing Wage.

4. Tipped Wage.

5. Fair Wage.

As the employer of a number of workers, I would prefer compensation strategy. Compensation means the cash rewards paid to employees in exchange for the services they provide. Compensation may include base salary, wages, incentives, and commission. It tries to ensure fairness in deciding the worth of the workers.

Characteristics of Compensation Strategy:-

1. It must be affordable to the company.

2. Well Structured.

3. Reasonably Competitive.

4. Should be based on job evaluation.

5. Should be fair to both the employer and the employee.

6. Should ensure the equal pay for equal work.

7. Should be bare minimum.

8. Should be flexible to allow necessary changes.

9. Should minimise employee turnover.

10. Complies with government regulations.

11. Motivates employees.

12. Cost Structure reflects the organisation's ability to pay.

Yes, wages would be adjusted over the course of a labor contract.