3.3 - Workers Flashcards
Time rate
A rate of pay per hour worked, so the more hours an employee works the more he or she will earn
Piece rate
An amount paid to an employee of a firm per unit of output produced, for example for each article of clothing made or kilogram of apples picked
Fixed annual salary
A job will be divided into 12 equal monthly payments regardless of the number of hours actually worked by the jobholder each week over and above an agreed amount of time,
- often between 35 to 40 hours per week
Performance related payments
The more sales they make or revenue they earn for the organisation they work for the more they will earn, usually as a percentage of their sales e.g. sales commission
Fringe benefits
- Benefits provided in addition to the normal salary
- They can be significant in influencing occupational choices
Includes benefits such as such as childcare, free lunches, gym membership, company car
Non-wage factors of job selection (name 4)
- hours of work
- holiday entitlement
- promotion prospects
- flexible working arrangements
- qualifications required
- quality of working environment
- how secure the job is
- how satisfying the work is
- fringe benefits
- training opportunities
- pension entitlement
- opportunities for promotion
- interesting and varied tasks
- distance or time it takes to travel to and from work
Labour markets
Markets where people offer their services in exchange for a salary
Factros affecting the supply of labour (3)
- Changes in the net advantages of an occupation
- Changes in the provision and quality of education and training
- Changes in size and age distribution
Factors affecting the demand of labour (4)
- Changes in consumer demand for goods and services
- Changes in the productivity of labour (more productive - more demanded)
- Changes in the price and productivity of capital
- Changes in non-wage employment costs
Factors affecting an inidividuals bargaining power (4)
- Membership of trade union
- Age and experience
- Level of education
- Current supply condition of the job
Wage differentials
The difference between the wage received by one worker or group of workers and that received by another worker or group of workers
How do regional differences in labour demand and supply conditions influence wage differentials?
There will be higher demand of a certain job which would benefit the area, and less demand for more useless ones
* less demanded job may experience a lower salary than the highly demanded one even if the competency levels are similar
How might local pay agreements differ within occupations?
Demand of a certain job may increase or decrease the wages they are willing to pay their employees
- in high-cost urban areas (London) employers may increase wages to keep their employees at a higher standard of living (high rent) and reduce complaints about work environment
How will different abilities and qualifications affect wage differentials?
The longer a job takes to train for, the more skilled that job is
- this will lower the supply of employees as only a few can meet those job-specific (specialised) standards
- this can result in higher pay
How will fringe benefits influence wage differentials?
They will attract more employees who are seeking customised benefits, non-monetary facilities as payment instead of the money itself
- will increase supply
