The search for a satisfactory state of well-being in a human being, can begin with the achievement of a good remuneration for the work that has been done.
There is nothing better than the day you know you will be paid for your work done, you start making plans, you are happy all day and it is not for nothing, money is capable of buying illusions and dreams. Within an organization, the administration of wages or compensation is of vital importance for the proper functioning of the organization and to create motivation in the workers.
Terms to consider
It is not superfluous to remember that the salary is the remuneration in money or its equivalent, paid by the employer to the employee based on the position he / she exercises and the services he / she provides. For this reason, a salary earned by a courier is not the same as a sales manager within an organization, since their functions are totally different as well as their importance.
On the other hand, much has also been said about the terms direct and indirect wages. The direct is what is received as consideration for the service in the occupied position and the indirect refers to bonuses, prizes, commissions, tips, overtime, etc., that an employee receives, derived from the plan of services and social benefits offered by the organization.
Therefore, we must not forget that the union of these 2 salaries is what is called remuneration, that is, everything that the employee receives directly and / or indirectly as a result of the work he performs in a company.
It is also very important to note that wages produce exchange relationships between people and organizations, since workers offer their time, effort and everything in their power for the well-being of the company, and in return, it gives money, thus creating an equivalence between reciprocal rights and responsibilities between employee and employer.
For an employee, receiving money is a fundamental part of his life. Let's think for a moment what benefits could be had by having a good salary, could you buy goods that satisfy you and thus you would be approaching a desired lifestyle with which your level of well-being would be more than satisfied, not only materially but mentally As the commitment to the organization would be increased, more camaraderie and more desire to get ahead would be created.
On the other hand, for an organization, paying in money for the effort made by an employee affects first of all a cost and also in a very important way an investment, since it represents an application of money in a factor of production (human work), with the purpose of achieving a higher return.
A moment ago, when we discussed that the roles of a courier and a sales manager were totally different as well as their importance, we were giving a short introduction to deal with the topic at hand in this article: the administration of wages. This therefore refers to the set of rules and procedures aimed at establishing or maintaining fair and equitable salary structures in the organization.
It is important to determine the difference and importance of a job in order to correctly execute the administration of wages
We are going to understand fair and equitable as to an internal balance of wages, that is, these with respect to the other positions within an organization; and to an external balance of wages, comparing them with respect to the same positions of other companies within the labor market in society.
To determine both balances, it is necessary to have internal information through the evaluation and classification of positions, and external through a salary investigation to form a salary policy that is nothing more than the normalization of procedures regarding the remuneration of personnel..
To conclude, we could simply add that salary will always be a matter of utmost importance not only for the employee but for the employer, because this is creating a very interesting exchange process between these 2 actors in the organization that will make the employee commits in a more serious and dedicated way to achieving the objectives of a company and will allow the employer to also feel satisfied with the work that is being done and that is projected to benefit their organization
