Employees are the foundation and roots of a successful business. Without employees or employees lacking incentive, a business will have an unstable, less promising company. The proposition of a performance-based pay and abolishment of the minimum wage will give employees a financial incentive and will improve retention. To enforce the idea of performance-based pay, every time the minimum wage grows, the economy is ironically affected negatively, rather than beneficial. Employees are the backbone of a successful business; the employees carry out task every day that needs to be completed to keep the business fluent. Employees often lack motivation, doing the same task repeatedly receiving minimum wage with the number of hours as the only incentive. …show more content…
Younger applicants are less likely to obtain a job due to the inexperience. With an increase of wage, it is true it may attract more applicants but it does not guarantee a job. If the minimum wage exceeds the market wage, which is determined by supply and demand, this would cause employee to have hours cut or even terminated. Expressing statistically in a pros and cons argument, “In a survey of 1,213 businesses and human resources professionals, 38% of employers who currently pay minimum wage said they would lay off some employees if the minimum wage was raised to $10.10.” (Unknown, n.d.) With every 10 percent increase in the minimum wage, this leads to a 1 to 3 percent decrease in employment of low-skilled workers, which ultimately leads to a rise in unemployment. If hours are not cut and employees are not let go, businesses would be forced to fall. Minimum wage is not considered a livable affordable wage this is a problem for unskilled, uneducated people straining to start a career, or feed a family. To fix that problem the government would raise the wage to ignorantly short-term fix a problem, causing a long-term issue of inflation. Increasing minimum wage causes the worth of the dollar to decrease and ultimately causing inflation and rise of prices in all
through the corporate ladder is a great way to motivate employees, overworking might not be the best method, as it can cause burnout and unmotivated employees. Providing low pay and/or incentives to employees is also, in my opinion, not the best way to influence motivational employees who will put forth hard work, and be loyal to the company.
Well, raising the minimum wage has both the pros and cons. Still, the fact that increasing the minimum wage nationwide would increase millions of workers’ earnings is deniable. I suppose that’s why some people advocate raising the minimum wage will grow the economy for everyone. In 2014, the president of the United States, Obama, called on the current Congress to raise the national minimum wage, which proves that Obama actually supports raising the minimum wage. ‘February 2014 Congressional Budget Office Report The Effects of a Minimum-Wage Increase on Employment and Family Income is the latest attempt to do so, in this response to Members of Congress with respect to an increase in the federal minimum wage from $7.25 to $10.10 per hour.’
Intrinsic and extrinsic types of motivation have been widely studied and the understanding of each has led to great changes in how organizations run their businesses. It is clear that hourly employees have many great extrinsic motivators but lack intrinsic motivation in their job assignments which is a characteristic of our work culture. Changing the culture is one of the keys to improving motivation at that level of the organization because the best motivation occurs when employees perform because they want to and not because they are being made to do so.
Another con to raising minimum wage is that the value of even a minimum wage job increases, which means employers will look for a lot more production out of employees. Right now, the U.S> mandated minimum wage is at $7.25. Even the most unskilled worker can get a job at a McDonalds or Burger King or other restaurants. However, with an increase in minimum wage, as I said earlier about quality over quantity, employers will look for better quality workers and have much higher standards as to who they bring in to the company. A minimum wage increase to $10.10, which is the current proposal nationwide, would see the value of a job, even a fry cook, increase and that is trouble for unskilled
In 1938, the Fair Labor Standards Act was passed and ever since, the United States has required that all firms that do at least $500,000 worth of business per year pay their workers a minimum wage (“Handy” n.pag.). Because it affects so many workers in so many different aspects of the economy, the minimum wage plays a big part in the cost of labor and how firms deal with those costs. A change in the minimum wage, which would seemingly affect only workers, can actually be felt sometimes all the way down to the consumer, who might end up paying for it in the end—unless the firm finds another way to pay for the mandatory raise for all its workers, such as a decrease in its workforce or a change in the production process. These changes the consumer might not noticeably feel. A change in the minimum wage has several short-term and long-term effects on the economy that can be either beneficial or devastating to society at large.
There are indeed risks of raising the minimum wage, but the rewards outweigh those risks, so the minimum wage should be raised. Some people who are against this may say ...“But other economists say raising the minimum wage actually hurts the very people it's designed to help: One of the basic laws of economics is that if you raise the price of something, there will be less demand for it. In this case, if you raise the price of workers, the demand for workers will decline. That could mean companies cutting the hours of employees, laying them off, or hiring fewer workers in the future.”... Yes, it could hurt the people it is designed to help, but different states have done this and found the opposite to be true. With America’s still fragile economy we need a boost, a helping hand; And this could be it. So next time you go down to vote on a mayor or maybe even the next president, remember that raising the minimum wage is a good thing, and you should be supporting
Raising the minimum wage would affect employees. Supporters believe that raising minimum wage will improve people’s lives. We live in a consumer society. People who earn more spend more on products and services. As stated by BuzzFlash Headlines, “Higher Minimum Wage Would Create Over 100,000 New Jobs Nationally” (BuzzFlash Headline). Families would be able to use the money they earn to save for important things such as bills. If they wanted to, they could also buy more groceries or appliances. Non-supporters feel that raising the minimum wage will create many job losses. According to Economic Policy Institute, “Across the phase-in period of the increase, GDP would grow by about $22 billion, resulting in the creation of roughly 85,000 net new jobs over that period.”(David Cooper). If a family owned business has to raise the wage rate they pay, it is possible they will not hire as many people as they usually do. Businesses across the nation would be impacted by raising the minimum wage. According to the CNBC, “The great division among businesses and economists over the impact of raising...
Business owners could use incentives and gifts to encourage the workers. For instance, a store owner could initiate the idea that whoever brings ten new customers to the store this week will get a bonus in their pay check. Business owners could give raises, bonuses, and time off as incentives to work as hard as they can. By giving fun extras to the employees, they will feel compelled to do their best.
Equally, a higher minimum wage attracts new players in the competition, making the hiring process hard and unguaranteed. On the demand side of the market, if the minimum wage exceeds the normal market wage, considering the law of supply and demand, some workers will lose their jobs or have their hours cut (The minimum wage delusion/Forbes Magazine). The evidence from past directs that increase in the minimum wage has led to a small percent of decrease in employment of low-skilled workers slowly rising unemployment (Mises
Performance related pay is a financial reward given to employees whose work is considered to have reached a required standard or is above average. “PRP criteria can relate to the individual employee, to work groups or to the organization as a whole” (Armstrong, 2002). It is fair to provide people with financial rewards as a means of paying them according to their contribution (Armstrong 1993:86). The primary purpose of performance related pay in any organization is to recruit, retain and motivate the workforce. It also helps in focusing employees’ minds on particular goals (Protsik, 1966); communicate to employees an organization’s core values, and change the culture of that organization (Kessler and Purcell, 1991).
There is no more critical role in our current society than that of a teacher’s. Teachers help shape the minds of the future. Tomorrow 's engineers, scientists, politicians, and educators are all greatly influenced by today 's Instructors. Without teachers society would not be anywhere near where it is now, and only a select few would have access to learning. Sadly however important teachers are in human civilization, they are still drastically understated, unrecognized and under paid. Although some people may argue that performance pay is good, performance/merit pay is bad because it will result in teachers doing much less personalizing of the curriculum, and spending that time doing only what things need to teach in order to keep their student’s
Depending on a person’s perspective, raising the minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change the economy. Small businesses and unemployment, teenage demographics, and the cost of civilian goods would be most affected. The only mystery is whether things would change for the better or for the worse. Many areas could be affected by a change in minimum wage, but potentially the most drastic change would be to unemployment.
Dwight D. Eisenhower once said, “Motivation is the art of getting people to do what you want them to do because they want to do it.” Studies have found that high employee motivation goes hand in hand with strong organizational performance and profits. Therefore, managers are given the responsibility of finding the right combination of motivational techniques and rewards to satisfy employees’ needs and encourage great work performance. This becomes a bit more challenging as employees’ needs change from one generation to another. Three of the biggest challenges a manager faces in motivating employees today are the economy and threats to job security, technological advances, and company cultures that primarily focus on the bottom line.
An important part of the retention of staff, reducing staff turnover and minimising absenteeism at work is ensuring that staff are properly motivated. This is not as easy as it sounds. At first glance, you might be tempted to think that merely increasing wages is the way to motivate! Not so. Most thinkers on the subject would argue that motivation is a far more complex issue than merely 'money'.
One of our discussion questions during the semester was “how can you motivate minimum wage employees”. It was a hard question to answer since most of the people that work under this salary are just present at their jobs for their paycheck and have very small interest in the company’s goals. Although that might be true, there is a way of motivating these employees. A good example that professor Nelson brought up in class was the “International Housekeeping Week”. During this week housekeepers who work really hard and have small salaries are greeted for all their effort. By doing this, these employees feel important to the company making them want to remain at their jobs because they feel they are treated with care. At my past job experience I did not motivate my employees much and the results were negative: the turnover rate was high and the employees that remained were there mostly because of their paychecks. This happened because I did not have much experience but at the end I realized that we were all a team and we have to listen and support each other. By doing this, the chemistry between all employees surged immediately and we had a happier work