Glossary of Human Resources Management and Employee Benefit Terms
Minimum wage is a critical labor policy that sets the lowest legally allowable wage that employers can pay to their employees for their work. It plays a pivotal role in defining economic fairness, workers' rights, and the overall standard of living within a society. This introductory guide provides an overview of minimum wage, its significance, how it is determined, and its impact on both employees and employers.
A minimum wage is the lowest hourly wage that employers are legally required to pay to their employees for their labor. It is a government-mandated wage floor designed to establish a baseline level of compensation to protect workers from exploitation and ensure that they receive a reasonable income for their work.
Minimum wage laws vary from country to country and, in some cases, from state to state or region to region within a country. The specific minimum wage rate is typically set by government authorities through legislation or regulations. Employers are obligated to pay their employees at least the established minimum wage, and any attempt to pay less is generally considered illegal.
The purpose of minimum wage is:
The advantages of minimum wage policies:
The disadvantages of minimum wage policy are:
Workers exempted from minimum wage are:
The frequency of minimum wage increases varies widely by country, region, and economic conditions. In some places, it can change annually, while in others, it may remain unchanged for several years or more. There is no fixed schedule for minimum wage increases, and it depends on legislative decisions, economic factors, and local regulations.
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.