Economic Influences
- Submitted by: smith46
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- Category: Politics: Economics
- Date Submitted: 02/24/2014 10:51 AM
- Pages: 3
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Economic Influences on Pay" Please respond to the following:
From the e-Activity, compare the salaries for the same job in two different geographic locations within the United States. Speculate on two economic influences that may impact the pay difference in the two geographic areas you selected.
The labour market conditions or supply and demand forces operate at the national, regional and local levels, and determine organizational wage structure and level.
If the demand for certain skills is high and supply is low, the result is a rise in the price to be paid to these skills. I looked at the wages for a Bankruptcy Specialist in Florida ($26,000), Washington, DC ($48,000)& Newark, NJ ($46,000). Across the board Florida paid the least and Washington paid the highest. These are the two economic influences that may impact each area.
Prevailing market rate: This is known as the ‘comparable wage’ or ‘going wage rate’, and is the widely used criterion. An organization compensation policy generally tends to conform to the wage rate payable by the industry and the community. Some companies pay on a high side of the market in order to obtain goodwill or to insure an adequate supply of labour, while other organizations pay lower wages because economically they have to or because by lowering hiring requirements they can keep jobs adequately manned.
Skill Levels Available in the Market: With the rapid growth of industries business trade, there is shortage of skilled resources. The technological development, automation has been affecting the skill levels at a faster rate. Thus the wage levels of skilled employees are constantly changing and an organization has to keep its level up to suit the market needs.
From the scenario, examine two strategies that organizations use to combine incentive plans in a balanced scorecard. Provide one example in which the balanced scorecard measures performance linked to a company’s long-term goals, and one example in which...
From the e-Activity, compare the salaries for the same job in two different geographic locations within the United States. Speculate on two economic influences that may impact the pay difference in the two geographic areas you selected.
The labour market conditions or supply and demand forces operate at the national, regional and local levels, and determine organizational wage structure and level.
If the demand for certain skills is high and supply is low, the result is a rise in the price to be paid to these skills. I looked at the wages for a Bankruptcy Specialist in Florida ($26,000), Washington, DC ($48,000)& Newark, NJ ($46,000). Across the board Florida paid the least and Washington paid the highest. These are the two economic influences that may impact each area.
Prevailing market rate: This is known as the ‘comparable wage’ or ‘going wage rate’, and is the widely used criterion. An organization compensation policy generally tends to conform to the wage rate payable by the industry and the community. Some companies pay on a high side of the market in order to obtain goodwill or to insure an adequate supply of labour, while other organizations pay lower wages because economically they have to or because by lowering hiring requirements they can keep jobs adequately manned.
Skill Levels Available in the Market: With the rapid growth of industries business trade, there is shortage of skilled resources. The technological development, automation has been affecting the skill levels at a faster rate. Thus the wage levels of skilled employees are constantly changing and an organization has to keep its level up to suit the market needs.
From the scenario, examine two strategies that organizations use to combine incentive plans in a balanced scorecard. Provide one example in which the balanced scorecard measures performance linked to a company’s long-term goals, and one example in which...