SALARY AND ADMINISTRATION

THE CHARACTER

  WAGE

Salary is the remuneration in money or its equivalent paid by the employer to the employee based on the position that he holds and the services it provides. Direct salary is exclusively one received as consideration for the service in the busy office. In the case of employees working part-time, is the number of effective hours worked per month. The resulting indirect wage clauses is the collective labor agreement and plan of social services and benefits offered by the organization. Includes bonuses, prizes, commissions, tips, additional profit sharing, overtime, etc. The sum of direct and indirect wages are compensation. Pay is salary is gender and species. The nominal wage is the amount of money allocated in individual contract for the position held. In inflationary economy, the nominal wage suffer erosion if not updated regularly. According to its complexity

Salary can be considered in different ways:

It is paying a working

It is a measure of the value of an individual in an organization

Locate a person in a status hierarchy within the organization

THE SALARY FOR PEOPLE

In exchange for a wage (interchangeable symbolic element: money) man is able to engage much of yourself, your effort and your life. The salary is the source of income that defines the pattern of life for each person depending on their purchasing power.

THE SALARY FOR ORGANIZATIONS

Wages are both a cost and an investment. Cost, because wages are reflected in the cost of the final product or service. Investment because money represents application by a factor of production (labor) as an attempt to get a higher return.

WAGE COMPOUND

There is a lot of internal (organizational) and external (environmental) factors that determine wages determining their values. The set of external and internal factors is composite wage (wage mix). The factors are:

-Types of positions in the organization

-Wage policy of the organization

-Financial capacity and overall performance of the company

-Labor market situation

-Economic conditions (inflation, recession, cost of living)

-Unions and collective bargaining

-Labor law

CONCEPT OF SALARY ADMINISTRATION

It is the set of rules and procedures to establish or maintain structures of equal and fair wages in the organization, concerning:

Wages with respect to the same charge of the organization (internal balance of wages). It is achieved through assessment and classification of positions on a previous program description and analysis of charges.

Wages with respect to the same charges from other companies operating in the labor market Is achieved by investigating wages.

With this information a wage policy, which is a particular and specific aspect of the general policies of the organization is defined.

Increase the flexibility of the organization giving the means to staff mobility, streamlining development opportunities.

wage policy 

The set of principles and guidelines that reflect the direction and philosophy of the organization as it pertains to issues of remuneration of its employees. It is static. It should contain: 

Fee structure and salaries 

Salaries admission 

Forecast salary increases 

Collective (or cost of living) 

Individual, in addition to collective 

by promotion 

by escalafonamiento 

merit 

Wage policy should take into account other important aspects of the reward system personnel: social benefits, incentives and performance incentives dedicated employees, growth opportunities or career advancement, job security (stability in the company, etc.).