Remuneration –Influencing Factors

Remuneration

External Internal

Labor Market Business Strategy

Cost of Living
Job Evaluation and
Labor Unions Performance Appraisal
Labor laws
The Employee
Society

Economy
External Factors
1. Labor Market
 Demand and supply
 Going rate

2. Cost of Living
 Rising prices
 Dearness allowance
3. Labor Unions
 Non-unionised factories
 Unionised factories

4. Labor Laws
 Payment of wages act 1936
 Minimum wage act 1948
 Payment of bonus act 1965
 equal remuneration act 1976
 Payment of gratuity act 1972
 Companies act 1956
5. Society
 Ethical and social considerations

6. The Economy
 Depressed economy
 Expanding economy
Internal Factors
1. Business strategy
 Achieve rapid growth
 Maintain and protect current earnings
2. Job evaluation and Performance appraisal
3. The employee
 Performance
 Seniority
 Experience
 Potential
 Luck
Challenges Of Remuneration
 Skill based pay
 Pay reviews
 Pay secrecy
 Comparable worth
 Employee participation
 Eliticism Vs Egalitarianism
 Below market Vs above market remuneration
 Monetary Vs non-monetary benfits