The salary in the world of business

Everyone who gets a job is interested primarily in the level of wages and the frequency with which they are paid.

In the world there are very few people who want to do business, even loved ones, solely for the sake of pleasure. Everyone wants to get paid for it.

Without motivation, the doctor is unlikely to pull the patient from the other world, the football player can lay out 100% on the football field, and the janitor can clean the streets cleanly.

In the business world, mostly private, wages (fixed) are relative terms. Since there are many bonuses in the form of bonuses and rewards for a certain type of work, professionalism, diligence and perseverance in the work to achieve the most favorable result for the company, enterprise, firm.

Often entrepreneurs offer wages at the minimum level. What is it – infringement of the rights before others or the management intentionally plans to save you some money?

The answer is simple: the leadership that takes you to work almost always does not know what kind of person you are, what qualities you have and, in general, whether you will get the job or not.

Therefore, a person employed should be as good as possible in the process of labor and show what he is capable of. This is on the one hand.

On the other hand, due to the unfavorable situation from the point of view of legislation, wages in the business world are set at the level of the minimum wage in order to avoid friction with supervising instances.

In this article, I will try to disclose the concept of wages and talk about methods of stimulating work (increasing motivation).

So, the main type of labor income is the salary – a monetary reward, which, according to the employment contract, the employer pays the employee for the work done.

What does the salary consist of?

Structurally, wages consist of two elements:

Basic salary;
Additional wages – remuneration in excess of the established standards for ingenuity and labor success, as well as special working conditions. It is established in the form of bonuses, surcharges, surcharges, guarantees and reimbursement of expenses provided for by the current legislation.
Wage functions:

Formation of effective demand;
Measuring and distribution;
How to set a salary

To ensure certain functions of wages it is necessary to adhere to the following principles of its installation:

Increase in real wages as production and labor efficiency increase;
Ensuring faster growth in labor productivity than the average wage growth rate;
The differentiation of wages depending on the labor contribution of workers in the results of production, the content and working conditions, the location of the enterprise, its sectoral affiliation;
Equal wages for equal work.
The amount of wages must be such that the worker can restore his physical strength, supplement his professional knowledge, spiritual and qualification level, and materially provide for the family.

First of all, the ratio of supply and demand to the labor market and state policy in the field of labor and social protection of the population affect the level of wages.

In general, wages are part of the cost structure of products, works, services, and are directly dependent on demand in the market for these goods or services.

Therefore, based on the realities of our life, about 80% of entrepreneurs in the world of private business use the payment of wages in an envelope. Bypassing thereby both tax and pension legislation. In this business there are pluses, and for the employee – minuses.

Motivation of work:
Now let’s move on to the motivation of labor:

Motivation is the process of creating conditions that allow to influence the behavior of a person and to interest him in active and conscientious work.

The motivation system involves the use of two components:

Motive – expresses the inner needs of the individual;
Stimulus is an element of interest in work and a concrete form of manifestation of the desire for its realization. He is the instrument of inducement and coercion.
The motivation system is used to influence motives of work activity and can be effective only if it is aimed at a specific type of motivation of the employee.

The type of motivation is the prevailing direction of human activity to meet certain groups of needs.

Types of Motivation

Depending on these needs, the following types of motivation are distinguished:

Workers who focus on the content and social usefulness of labor;
Employees who focus on remuneration of labor and other non-labor values;
Workers, in whom the value of different values ​​is balanced.
The majority of employees (up to 80%) are of the second type of motivation, the basis of which is high in their understanding of wages.

The following incentives affect labor motivation:

1) a system of economic standards and benefits;
2) the level of labor incomes and the fairness of their distribution;
3) the conditions and content of labor;
4) relationships in the team;
5) recognition by the environment and career;
6) interest in the work;
7) the desire for self-affirmation;
8) risk;
9) internal culture.

The following main groups of methods of forming and regulating the process of motivation are distinguished:

Methods of targeted orientation – are based on setting goals and justifying it;
Methods of reinforcement – are based on the fact that the labor behavior of people can be changed through targeted incentives and the application of a system of justified sanctions.
In general, I want to say that the wages and methods of its accruals remained, as a gift, from the former USSR, which has long been absent, but something new in the wage system has not appeared.

The motivation system, according to labor legislation, remained the same (surcharges, bonuses). To a large extent, the Soviet Union fell apart precisely because an unfair leveling in the wage system a priori could not positively influence the development of the economy.

It has long been necessary to abandon the system of equality of all and around and move to a new level of the payroll system. Examples do not need to go far: Poland, Georgia and others.

Smart entrepreneurs understand this well and are able to stimulate their employees. As a result, everyone wins: both the businessman and his employees.

I also want to offer to read my article about the motivation of entrepreneurs to start their own business.

Money for business, online loan website: take out a loan online.
That’s all! Good luck!

18. May 2017 by Ekaterina
Categories: Advice for Business, Business experience | Leave a comment