Wages and Employee Benefits - Research Paper Example

 Wages and Employee Benefits Abstract This document is going to highlight and expound on several issues relating to wage and employee remuneration. It will try to elaborate several issues that surround wages especially in terms of grievances. It will also be recommending on some of the methods in which employers and unions can adopt to reduce the grievances from workers. The recommendations will also come with guidelines that may be used as a direction to enable the system to be implemented. It will also highlight the reasons why I think the new system will work much more efficiently than the normal ways. Introduction Labor unions and employers over the years have been in constant squabbles and negotiations revolving around wages and employee benefits. This paper aims at defining several considerations that are viewed before settling on a certain wage, and wage benefits. The paper will also be addressing the main hurdle that is in determining wage. This is evident by the way most employers and unions ask for wage increments. A wage is an amount payable to the employee by their employer after working on a certain task. Wages are paid either according to the work done, or like in most cases on hourly basis. Any contract that is being signed must definitely surround the point of wages. This is because grievances normally arise and the contract therefore stipulates the best course of action. The matter touching on wages revolves around four major areas. These include matters to do with payment, employee benefits, institutional issues and administrative clauses. An administration clause is an excerpt from a contract that clearly defines the duties of an employer. These duties are deemed relevant to guide the employees and the employer in any issues that might be of an administrative nature. These are issues to do with procedures to be followed when matters concerning wages and remuneration are supposed to be addressed. Most employers get into contracts with other firms so as to provide their employees with the employee benefits that are part of the contract. Administration clauses normally assist the families in following up on the benefits of the employees. They are mostly evoked when the person no longer works for the company or when they need to access their benefits. Deceased persons are not able to process their benefits so, the administrative clauses totally help assisting the bereaved or incapacitated in following upon their benefits. As put across by Reilly & Estreicher (2010), employee benefits are normally non-wage perks that come as an addition to their normal salaries or wages. However they are also normally provided for by the employers. The main reason why employee benefits are provided is because of the welfare of the workers. Perks are normally a means to enhance the economic well being of the workers. This has therefore seen to it that employee benefits vary from employer to employer. In most cases, employers use the employee benefits as a means of staff attraction and retention. Common examples of these benefits include medical cover, housing and mortgages, leave, education cover, overtime payment among others. This is what most people put into consideration because they know that these perks and packages are what determine their quality of life. Theoretical foundations The most common wage related issue that is normally discussed is the issue about minimum wage. This is the smallest amount of wage that can be payable to any employee. It is the lowest payable rate, per hour, daily, weekly or monthly. This is normally set and agreed upon by the government in consultation with the labor unions of a country. They can be established either through government legislation or by the signing of contracts between the relevant parties. In order to avoid the grievances associated with wages, the stakeholders should determine a more comprehensive package that will ensure minimal grievances. Such a program will be quite influential in the determining of the best wage rate or the best approach to calculating the best wage rate. This program will ensure that the program does not strangle both the employer and the employee, and that they are proper beneficiaries of the system. Discussion As a suggestion, I would like to propose wage payment according to the amount of work done. The employers should put systems in place to ensure that the work done by the workers is measurable. This will make sure that workers are paid according to the amount of work done. Unlike in the other systems, this system will ensure that workers are not paid according to the time spent in the workplace but according to the work done. This arrangement will make certain that there arise minimal grievances especially from the workers. Instances of favoring other people will come to a stop. Workers will not be passing time at the workplace and ask for remuneration at the end of the day. The employers will also not find any reason to come into conflict with the workers because jobs would be measured hence payment will be according to the work done. Using this format, even the labor unions will have a much easier time to negotiate for their members. This system also reduces the likelihood of employers being harasses and cajoled by the labor unions (Skurzynski, 2008). Labor unions play a very vital part in ensuring the well-being of both the employers and the employees. They are normally the negotiators when it comes to advocating for the rights of the employees. While the labor unions advance the rights of the employees, more often than not they infringe on the rights of the employers. Having a system in place that evaluates the work done by the employees will come in handy for the employers. This is because, when confronted by the labor unions over wage issues, they will also have a reference point from which to .the employers will also categorize their jobs according to expectations and the employees will be expected to meet those expectations. Job descriptions will also come in handy for the employers and employees. This will mean that the employees will only hire the workers with an expectation that the employers will deliver according to the contract. According to Franzese, Mooseleschner and Schurz (2003), labor unions and other financial institutions are the ones responsible with tracking the movement of payments and ensuring delivery of benefits. These institutions have to work in tandem with each other so as to ensure seamless transitions and smooth transactions. Conclusion In conclusion, the wages and issues related to wages can never come to a common ground because of other indirect issues, for example inflation.. Several determinants are, however, put into consideration; some of the issues are best explained using the theories related to wages. Some of the theories include wages, marginal productivity theory, and the wage fund theory amongst others (Altman, 2006). I found out that every institution has a different approach to determining their wage according to their company’s objectives. References Altman, M. (2006). Handbook of Contemporary Behavioral Economics. Armonk, N.Y: M.E. Sharpe. Franzese, R. J., Mooslechner, P., & Schürz, M. (2003). Institutional Conflicts and Complementarities: Monetary Policy and Wage Bargaining Institutions in EMU. Boston: Kluwer Academic. Reilly, D. J. & Estreicher, S. (2010). Employee Benefits and Executive Compensation: Proceedings of the New York University 59th Annual Conference on Labor. Alphen aan den Rijn: Kluwer Law International. Skurzynski, G. (2008). Sweat and Blood: A History of US Labor Unions. Minneapolis: Twenty-First Century Books. Read More