Pay/Salary/Wage and Benefits

Pay/Salary/Wage and Benefits

DOI: 10.4018/978-1-5225-6264-1.ch006
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This chapter will help you to understand the importance of pay and benefits for employees, how to approach salary negotiations and salary structures, and how to understand salary and benefits from the point of view of Millennial Generation employees.
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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 hired on a monthly or annual basis. Deb (2006) propose seven purposes of wages and salary, this book reports two main purposes of them, both are close the situations in Taiwan, which include: (1) to hire competent personnel: the organization attracts talented or appropriate personnel by providing the best wages or salary; and (2) to maintain existing talent: to maintain their current talent by providing competitive wages or salary so as to keep the workforce stable (Deb, 2006). In Taiwan, company offers better wages or salary to attract Millennial Y individuals, and then retain the appropriate employees. 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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