Pay/Salary/Wage and Benefits

Pay/Salary/Wage and Benefits

DOI: 10.4018/978-1-5225-2044-3.ch006
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Abstract

After you read this chapter, you will be able to understand the importance of pay/salary/wage and benefits for employees, realize the approaches to propose the salary negotiation, realize the approaches to design a salary structure, apply the equity theory to understand the thoughts of the employees for the salary and benefits, and understand the focus and perceptions about salary and benefits of Millennial Generation workers.
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Pay/Salary/Wage System Design

Wages and salary administration is the application of a systematic way of ensuring that workers are paid in a logical, equitable, and fair manner. A wage can be defined as the total sum of money paid under contract by an owner to an employee for services rendered; salary refers to the remuneration paid to clerical and managerial personnel employed on a monthly or annual basis. The purposes of wage and salary administration include: (1) to hire competent personnel: the organization attracts competent personnel by providing the best wages or salary; and (2) to maintain their current talent by providing competitive wages or salary so as to keep the workforce stable (Deb, 2006). Salary management is a bothersome but key issue in the development and management of the human resources of companies and is a critical tool to encourage the workers to fully display their abilities or potential to facilitate the performance of the firm, in which any other encouraging measures are also able to be more effective (Li, 2013).

Thus, pay or salary or wage play an important role in human resource management. Job seekers hope to obtain higher pay or salary or wage through changing jobs. In Taiwan, many enterprises adjust workers’ pay or salary or wage every year, and in most enterprises this is an increase. However, there are companies that do not change or reduce workers’ pay or salary or wage. Therefore, when several companies publish their recruiting advertisements they focus on the fact that they give higher pay or salary or wage to employees than other companies.

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