Factors that determining Wages
Wages refers to an early rate of pay and is the pay basis used most frequently for production and maintenance employees (blue color workers). They are hourly or daily-based payment given to the labor for the amount of work finished in a day.
Factors determining wages: A number of factors can act as determinates of the account of wages of employees of organizations in developed countries. Here identified the following factors that are discussed shortly:
Collective bargaining: The bargaining power of the employees can influence the number of wages. If the bargaining power is a strong rate of wages in high. Otherwise, it may set at a low rate.
Company ability: If the company has a high financial ability, the employee can get high wages rate. On the other hand, low financial ability can influence the employee the employee to accept a low rate.
Labor market: Availability manpower in the power market can increase the bargaining strength of management of employee then get lower wages. Otherwise, the rate may be high.
The relative worth of the job: High position of jobs can ensure high wages but the low position cannot earn so. Therefore, the relative worth of jobs acts as a universal factor influencing the rate of wages.
Changes in the price level: Due to change of price level, employees have the scope to place demand for wages changes. If the price level is changed heavily, a rate of wages is high otherwise experiences minor changes.
Government legislation: In the case of public sector dominance wage scale is determined and changed by the govt. of Bangladesh. If Govt. machinery acts positively and liberally, employees get high wages.
State of competition: There is a much-competing organization in Bangladesh. So change of wage rates depends on the change of rates of other organizations. Because management usually follows an instance of competing organizations.
The ability of workers: Skills and efficiency of workers also convince the management for higher wages rates. Otherwise, a skilled workers turnover rate may be high.
Nature of work: It is the ninth factor influencing the rate of wages. If the job nature is risky employees get the higher rate. But workers in simple jobs get minimum wages.
Facility of the jobs: Some works have higher facilities such as transfer, accommodation, overtime etc. the real wages of those jobs are higher. Fewer facilities can earn less real wages.