Wages and Salaries

Only available on StudyMode
  • Download(s) : 288
  • Published : December 18, 2012
Open Document
Text Preview
Wages and Salaries
An extensive review of the literature indicates that important work- related variables leading to job satisfaction include challenging work, interesting job assignments, equitable rewards, competent supervision, and rewarding careers. It is doubtful, however, whether many employees would continue working were it not for the money they earn. Employees desire compensation systems that they perceive as being fair and commensurate with their skills and expectations. Pay, therefore, is a major consideration in human resource management because it provides employees with a tangible reward for their services (Bohlander, Snell, and Sherman, 2001). Stone (1982) indicated that people are motivated by money for many different reasons. The need to provide the basic necessities of life motivates most people. Some people think of money as instrumental to satisfying non-economic needs such as power, status and affiliations with desired groups. Money is often viewed as a symbol of personal success and achievement. Many factors affect how wages and salaries are set. The factors depend on area of living, the labor market, minimum wages and other governmental regulations, the cost of living, the ability of the employer to pay, the worth of the job and the presence of a collective bargaining agreement. Pay rates can be adjusted to help employees cope with their living situations (Drummond, 1990). Fringe Benefits

Fringe benefits are a complement to wages of workplace compensation. The fringe benefits for the workers in hospitality organizations help the operation by having a positive, motivating work climate, increases in productivity, sales, profitability, excellent quality and cost control. Money is an important factor to motivate employees but today, fringe benefits become equal to money as an important role to motivate employees. So an essential part of learning to lead managers is to understand better the conditions which an employee needs the most to perform the best job (Drummond, 1990). Each year, organizations have a lot of expense from employees’ benefits. However, a benefits program should meet the objective of motivating employees. A good benefits program will allow employees to share their idea by doing surveys or 23other methods and organizations should accept their ideas to improve benefits. Employers should also periodically review the benefits program to be sure that it is meeting employees’ needs. The categories of benefits (see Appendix C) contain a list of basic employees benefits provided by organizations (Drummond, 1990). There are varieties of employee benefits: for example;

1. Health insurance: Health insurance is the most common benefit in the U.S. in 1983, the most expensive benefit for employers to pay was Social Security pay for retirement. In 1988, health insurance became the most expensive benefit, largely because health care costs have been increasing dramatically since 1965. One result of this has been that more organizations are shifting part of the cost of health insurance On to the employees. By far a majority of employers in the United States offer health insurance to their employees (Drummond, 1990). 2. Vacations with pay: It is generally agreed that vacations are essential to the wellbeing of an employee. Eligibility for vacations varies by organizations, locale, and size. To qualify for longer vacations of three, four, or five weeks, one may expect to work for seven, fifteen and twenty years, respectively. A new benefit offered by 11 % of 1,000 employers surveyed nationwide allows employees to “buy” an extra week of vacation. The cost to employees is a lost week of pay, making the extra vacation period simply time off without pay. Vacation buying programs appeal to relatively new employees who haven’t acquired the time for longer vacation periods. This benefit also favors employees who need extra time to care for aging parents or those simply wishing to extend a vacation...
tracking img