WAGE AND SALARY ADMINISTRATION
The term Wage and Salary Administration denotes the process of managing a companies compensation programme. The goals of compensation administration are to design a cost-effective pay structure that will attract, motivate and retain competent employees.
Compensation may be defined as money received in the performance of work plus many kinds of services and benefits that organization provides to their employees.
OBJECTIVES OF WAGE AND SALARY ADMINISTRATION
- To establish a fair and equal pay for similar work.
- To attract competent and qualified personnel.
- To retain the present employees
- To improve motivational levels of employees
- To project a good image of the company
- To establish sequence of lines of promotion
- To minimize the changes of favoritism while assigning the wage rates.