By raising minimum wage, the value of these training opportunities and incentive to earn more money goes out the door. Truth be told, it’s just life, and life isn’t always fair. By raising the minimum wage, it opens up the opportunity for less qualified employees to earn the same amount of money as the higher skilled workers. If an employer believes an employee is highly qualified, they will start their pay higher than the current minimum wage. Some may beg to differ and say that if the company is small or big should be taken into considerations and that is actually Another reason the government should not raise minimum wage, because the size of companies varies.
In order to maintain their net earnings, the business look for a number of alternatives, that includes cutting employment and making other similar decisions. Thus the results that policy makers expect form the fixation of minimum wages doesn’t turns out to be the same due to the behavioural responses of the employers. The supporters of minimum wage imposition believes that minimum wage imposition is the technique to boost the incomes of full time adults who belong to low income families in order to better off their situation. But in contrast to the assumptions, in reality the data indicates that mostly the part time workers are young workers and are generally not from the low income background. Hence the policy ends up resulting in creating
This exemplifies that their claim is accurate because their evidence shows that teachers were willing to forfeit the opportunity to successfully teach kids for the financial incentive. Similarly, in Gregory Hamel’s article, “Negatives of Motivating Employees With Financial Rewards,” he explains that, when offered money, employees create an “every man for himself” tone which creates inconsistency within the workplace. Negative effects of an individualized workplace include a lack of communication amongst employees; coworkers will fight over work loads because the more work that is completed, the higher their bonus is. Furthermore, the inconsistency of monetary incentives may cause people to get a large bonus one year, and a small bonus the next: this can lead to a lack in confidence in their performance at work. This supports what the Braufman’s are concluding in their writing because it shows the negative effects monetary influences inflict upon people.
- Another challenge that could be faced by employers adopting FWA is if the employees weren’t willing to adapt to such changes or weren’t able to resist any non-work temptations. Which can also lead to decreased productivity among
Changes in compensation could cause many issues is the staff does not feel adequately provided with benefits. A decrease in staffing can occur if the merger of the compensation systems leaves them feeling underpaid or that they have other employment options (Sinkin & Frederiksen, 2012, para. 4). For example, if staff will no longer receive a bonus in order to increase pay to help equalize pay grades across both companies. This could leave the staff that had their bonuses terminated with a feeling of being underpaid or unappreciated.
It is a natural instinct to seek for more or to have more but somehow it can decrease the level of enjoyment in performing task because they might working so hard for the rewards and may cause them stress or fatigue. It would not be a problem when the rewards are certain but the problem is when the rewards are abruptly unavailable due to several reasons. An employee who has been working so hard for the rewards must be really disappointed and probably reluctant to perform their daily task because of the transformation of their motivation dependency from enjoyment to rewards. In addition, organization also should strategically plans on how to give compensation or rewards. Once organization starts giving out too many rewards, employees will always ask for more compared to the previous rewards and at some point employees’ intrinsic motivation may be shifted wholly to extrinsic
Moreover, transformational leaders are skilled at communicating the organization 's vision, the steps to get there and each employee 's key role for its realization. Transformational leaders are effective in getting followers to understand and believe in their own individual and collective abilities to achieve higher levels of performance. Helping employees understand the important role they play in achieving the organization 's mission and vision is crucial. Moreover, using a management-by-objectives or MBO process is needed to help everyone in the organization work together and create a common understanding. In this approach, individual employee objectives and plans are created in alignment with overall organizational.
It can lead to complete growth of an organisation if employees are fully motivated. Leadership behaviour can bring inspirational motivation that comprises the formation and presentation of an attractive vision and future of an organisation and the exhibition of confidence and passion. Leaders sacrifice for the benefit of the team, setting a personal good example and demonstrating high ethical principles can greatly add value to an organisation. Furthermore, leader’s behaviour that gives support, training and problems awareness to employees can make an organisation stands out from its
Employee engagement is about having a clear understanding of how an organisation is fulfilling its purpose and objectives, how it is changing to fulfil those better, and being given a voice in its journey to offer ideas and express views that are taken account of as decisions are
In addition if compensation is based solely on performance some employees may worry about security. This also could negatively impact their level of work. When a person is preoccupied with rather or not their pay is sufficient to meet their day to day needs, their productivity suffers. Cash based Compensation When paying a salary the employee has a sense of security. They know from a month to month bases how much they will receive.
If a company pays workers more than what they are valued for, the firm will not stand a chance of survival against its competitors. If there is a gain for the worker, it is also followed by a loss. So if the employees have a gain of the rise of the minimum wage, the company suffers on providing the superior insurances, proper training, equipment, or environment. You will have a gain from a raise of the minimum wage. Sure, that is if you manage to keep your job.
“Some policymakers may believe that companies simply absorb the costs of minimum wage increases through reduced profits, but that 's rarely the case. Instead, businesses rationally respond to such mandates by cutting employment and making other decisions to maintain their net earnings. These behavioral responses usually offset the positive labor market results that policymakers are hoping for.” There is a large misconception that low wage jobs are meant to be permanent jobs when in fact these jobs are meant to be temporary. Low wage jobs should be seen as “first jobs”