What is salary and wage management?

Salary and wage management is the process of compensating employees of the organization in accordance with adopted policies and procedures. An important part of the policy of salary management and wages is the monitoring and evaluation of compensation of all employees to ensure that they are paid properly, both with respect to others in the same organization and the market as a whole. Wage and wage management is often an integral function of the Department of Human Resources of the Organization, but in general, the larger the organization is more likely to be solved by a separate department.

The first element of salary and wage management, periodic wage is a critical part of the functioning of any organization. If the payroll is incompetently processed, the employer could collapse in itself. Employee's personal budgets and plans are dependent on regular payouts and if compensation is late, short, or missing once, morality is seriously affected as well as trust in the stability of the employer. Whatever the employer uses wage service servicesThe parties or processes all wage functions internally, usually dedicated to significant sources to ensure that employees are paid in time.

The second element of salary and wage management - monitoring and evaluation of employee compensation - is a continued function. This includes the evaluation of the elements of each work in the organization and its classification according to a number of different criteria, including the nature of the work itself, the amount of necessary supervision, physical exertion normally associated with work and the amount of training necessary to perform the work. The basic idea is to determine how possible, the value of each job and to compensate for employees appropriately. The results of this monitoring process and evaluation process from time to time, especially if there are no collective bargaining, will lead to wage and salaries. In the collective bargaining environment, these assessments will be important in determining such modifications, although other considerations mayto influence wage and salaries.

In the United States, jobs are also evaluated, whether or not they are exempt from wage laws and overtime hours. For example, most production and administrative jobs are considered exempt; This means that even if the remuneration is managed every week and called salary, from a legal point of view, jobs are considered an hour. When a worker who is not exempt works over the statutory requirements, usually 40 hours in the calendar week, the bonus must be paid in addition to regular hourly wages. Most executive and supervisory workers, and some employees of higher -level staff, are considered to be liberation, which means that each salary period is paid, regardless of the actual number of hours worked. Generally, employees of the exemption are paid more than liberation. The US Ministry of Labor has specific tests that employers can register for each work to make fromThey were sure whether it was properly classified as liberated or exempt.

job classification is only one element of the ongoing evaluation process that is an important part of salary and wage management. Employers have to maintain a competitive advantage on the market and one way to achieve this is to employ the best people. Confidential employers will try to maintain a competitive advantage with regard to compensation, because they understand that their employees are constantly standby for better opportunities and the overall package of compensation is one of the most important elements of strategy to maintain employees. Maintaining employees is again important responsibilities who are responsible for salary and wage management.