Question

How can HR administer a complex pay structure that rewards pay increases on a regular basis?

Why are younger employees more likely to be motivated by very regular pay increases than older workers?

In some countries a national minimum wage or a “living wage” has been set by the government. What are the drawbacks of such an approach to dealing with low pay?

Answer 1

DRAWBACKS OF PAY INCREASE ON REGULAR BASIS

This would make employees lazy ,they will not be concerned with the organisation goals because they will be getting rewards on regular basis irrespective whether they have completed their work or not .

This will also generate a feeling of hatred or jealousy in older workers because they will be at par with the younger employees on pay basis despite of fact that they have given so many years to their organisation as compared to younger employees.

Not only this it will add huge cost to the organisation due to regular pay increase because it will not be able to meet this cost .

On the other hand minimum wage is a different concept altogether which has been introduced to safeguard the interest of the workers so that they will not be exploited at the hands of organisation.