Factor influencing wage and salary structure?

Answer 1

A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wages based upon differences in job contents. Beside the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are:

• The organizations ability to pay
• Supply and demand of labour
• The prevailing market rate
• The cost of living
• Living wage
• Productivity
• Trade unions bargaining power
• Job requirements
• Managerial attitudes and
• Psychological and sociological factors
• Levels of skills available in the market