Remuneration of Individuals: A few Principles to Understand

Remuneration Of Individual

Remuneration Of Individual

Every person joins the company or organization with the main intention of earning his butter and bread. In order to earn that, the salary or wages considered as the most important value. Shortly speaking, his work helps him to fulfill the needs of life, from basic to advance need. The salary and wages must, therefore, be in equality with the work done by an employee. At which point, an employee should get satisfied with the wages or salary, so that he can perform better in doing his work. In this article we’d like to talk about remuneration of individuals, which in essence become integral part of wages/salary.

In general, each employee must get fair remuneration so that both the owner and the employee gets the same value of satisfaction. In term of remuneration of individuals, there is a system which in essence should provide the adequate remuneration to the workers. The system should also motivates the workers to do better in their work. Furthermore, remuneration of individuals may ensure security and safety, as well as help in raising standard of living of the workers. Basically, remuneration became a very important term in the world of industry/business. This is an element from which the employer put a value over his employees in a way that is much better.

The key is fairness in term of wage system. The fairness is the most important thing which will give equality between the payment received and the work done. So in essence remuneration of individuals should not satisfy either employees or owner alone. On the contrary, the system must satisfy the owner in terms of the duty completed by an individual worker and at the same time it must satisfy employee in terms of payment received. If such system work, it will then create a healthy environment in any organization or company. Furthermore, it will also create healthy relation between the employees and the management.

That’s the main principle of remuneration. When talking about positive impact of remuneration, we have to mention several more:

  • A healthy system of remuneration help develop the society in an indirect way.
  • A healthy system of remuneration raises the standard of living, which give big impact for the employees.
  • Level of satisfaction raises, especially for the employees. They will likely give the best contribution for the company.
  • The labor turnover rate will be declined.
  • Thanks to good system of remuneration, a good relation between management and workers is created.

If the principle of remuneration has been violated, there is a few consequences:

  • Organizational objective will be harder to achieve.
  • Work of employee will not be completed, or at least hard to complete.
  • Increase in labor turnover rate.
  • Conflicts among employees and management.
  • The decline in worker efficiency.

So the principle of healthy relation between the employees and management should not be violated, and thus it can only be achieved if remuneration of individuals has built upon a healthy system where employees can find an opportunity to develop themselves and earn a salary and paid in accordance with the portion of the job.

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