WAGE STRUCTURE Meaning and
Definition
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Wage structure refers to the framework or system that determines the various levels of compensation or remuneration within an organization or industry. It is a comprehensive arrangement that outlines the different components and levels of wages, including base salaries, bonuses, incentives, and other monetary benefits, provided to employees at different positions or skill levels.
The wage structure consists of different tiers or bands, where each level is associated with a specific range of wages. It typically takes into account factors such as job seniority, skills, experience, qualifications, and performance metrics to determine the appropriate compensation for different positions within the organization. The structure may vary across industries, companies, or even specific departments within an organization.
A well-designed wage structure seeks to establish a balance between internal equity and external competitiveness. It aims to ensure that employees are compensated appropriately based on their skills and contributions, as well as the organization's ability to attract and retain talent. By having a clear and transparent wage structure, organizations can avoid potential issues related to wage discrimination, lack of fairness, and inconsistencies in compensation.
The establishment and management of the wage structure often involve compensation professionals or human resources specialists who conduct thorough market analysis, job evaluations, and salary surveys to determine the appropriate level of compensation for each position as part of their overall compensation strategy.
Common Misspellings for WAGE STRUCTURE
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Etymology of WAGE STRUCTURE
The word "wage" comes from the Old English "wæge", which means "payment, reward, or sum of money". It has Germanic origins and is related to the Old High German "wagal" and Old Norse "vegr". The term "structure" derives from the Latin word "structura", meaning "a fitting together, arrangement, or construction". When combined, "wage structure" refers to the organized framework or system of payment and rewards for work.
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