LOW PAY SALARY

MOHAMAD AMIN HAZIQ BIN MUSTAPA 225882

MOHD SYAFIQ BN MUHMMAD 226600

ABDUL RAUF BIN RAHMAT 225875

MOHD SHARAFIE BIN ZULKIFLI 225328

DEFINITION

SALARY

Salary mean that a compensation that a person get from a service.

Monthly, weekly, daily

LOW PAY SALARY

The worker does not get pay like what they expect or what they want.

FACTORS

Economic : globalization, industry condition,

Economic global, deflation can effect the company to not pay high to the employee

When industry is not in good condition they can’t hired or paid worker for high pay salary

Performance : poor performance

If the work perform well they may get a chance to rise their salary but it is the opposite if the performance is poor.

FACTORS

Experience and education

Experience, skills, and knowledge t is important

Technology

When the company depend on technology they tend to reduce the cost on worker and put more on machine.

Affect Of Low Pay Salary Toward Employees

•Anger

-When employees believe they should be earning more money, they exhibit signs of overall dissatisfaction.

•Stress

-Employees who don’t earn as much as they should may experience stress related to financial worries.

•Low Morale

-may demonstrate apathy towards their job duties and begin to question the reasons they stay with the same employer.

•Unemployment

-Motivation levels drop when employees don’t receive the compensation to which they are entitled.

Why company should increased salary

1. Motivate employees to work harder.

Janet Yellen (1984) suggested that higher wages create the conditions for workers to be more productive, pointing to “reduced shirking by employees due to a higher cost of job loss; lower turnover; an improvement in the average quality of job applicants and improved morale.

2. Attract more capable and productive workers.

The first firm to offer higher wages is more likely to attract and retain more productive workers.

3. Lead to lower turnover, reducing the costs of hiring and training new workers.

Reich and his co-authors documented a stunning turnover rate of nearly 95 percent per year among security screeners in mid-2000, which fell to 18.7 percent when pay improved.

4. Enhance quality and customer service.

Douglas M. Cowherd and David I. Levine (1992) found that an increase in the pay of lower-level employees relative to management increased the quality of production.

5. Reduce disciplinary problems and absenteeism.

Reich et al. (2003) reported a decrease in disciplinary issues following a wage rise.

ISSUE

In 2010, the category with the highest share of low-income workers by far -- nearly 75%! -- was food preparation and serving. That was followed by personal care, which also happens to be the fastest growing occupation in the next decade, according to BLS.

According to Schlesinger and Heskett (1991), cited in Pizam and Ellis (1999) the cause of job dissatisfaction among front line and customer contact employees was the poor wages, lack of career opportunities, insufficient training, repetitive tasks and lack of control over one's job.

conclusion

Q&A