Differentiation of wages of workers in various industries and professions exists in all countries. It mainly depends on the ratio of demand, as well as the supply of specific labor markets. When the demand for any type of labor is much less than its supply, then, if all other conditions are equal, the salary will be low.
How is going on in Russia?
In Russia, for example, in the 1990s, teachers, scientists and workers of various engineering and technical specialties and others could be attributed to such professions. However, in the case where the level of demand is higher than supply, the level of salary will be relatively high. In modern Russia, these types of work include the profession of manager, experienced lawyer, highly qualified accountant, and so on. Why is wage differentiation needed? About it further.
The main causes of differentiation
The following list of reasons classifies the differentiation of salary rates:
- Investments in human capital help to distinguish the quality of labor.
- The difference in the types of work according to working conditions, attractiveness, and many other factors, not monetary.
- The heterogeneity of the workers, that is, their difference in level of education, qualifications, training and abilities.
- Existence of labor mobility limitations.
Labor mobility and its limitations
The following types of data restrictions can be distinguished:
- Sociological represent differences in wages of the same type depending on citizenship, nationality and gender.
- Institutional - these are artificial restrictions on workers established by various institutions, organizations, institutions. For example, workshop unions impose restrictions on the number of their members, which impede the movement of workers of a particular profession to regions with higher wages, since the relocation raises the fear that the employee will not be accepted into the union of the workshop in a new place.
- Geographical, characterized by the attachment of a person to one place of residence. In different regions there is a differentiation of wage rates for workers in the same sphere, which does not depend on the conditions of their life and work. It is reflected in Russia in the coefficients that are accrued to the salary, and is caused by different ratios of supply and demand of specific regional labor markets.
Other factors
In addition to indicators of supply and demand, other factors are also highlighted that have a great influence on the size of wages. Of these, one can distinguish:
- salary policy in the enterprise;
- the cost of living;
- type of work;
- labor qualifications;
- quality and quantity of labor;
- working conditions;
- minimum wage as the main type of social services. guarantees.
All of the above factors create wage differentiation between individual groups of workers and specific workers. From a practical point of view, there are several types of it: professional, according to working conditions and categories of personnel, industry, territorial.
How is wage differentiation analyzed?
Sectoral and territorial differentiations are mostly dependent on the corresponding areas of the economic structure of a given country.
If we differentiate wages by categories of personnel, the difference arises when workers are divided into categories that take into account the degree of responsibility for the work performed and the position held.The personnel by categories is divided into workers, employees, managers and specialists. Depending on this, differentiation of the level of wages is carried out.
Workers who occupy senior positions in the organization, structural divisions, and managers, managers, deputies, craftsmen, chief accountants, engineers, captains and chairmen belong to managers.
Workers who are employed in positions requiring secondary vocational or higher education: doctors, teachers, engineers, economists, psychologists, mechanics, dispatchers and others - belong to the category of specialists. Also, assistants and assistants of the listed specialists can be attributed to it.
Workers who carry out paperwork and preparation of documentation, control and accounting, as well as housekeeping services, belong to the category of other employees.
Persons directly involved in the repair or the process of creating wealth, as well as the transportation of passengers, the movement of goods and the provision of material services and other things, belong to the category of workers.
What does differentiation depend on?
However, this does not change the fact that the main type of differentiation is the differentiation of wages depending on the efficiency and productivity of labor. It is a way to implement the function of stimulating wages. Such differentiation sets the goal of establishing the relative level of wages depending on the results, quantity and quality of labor, thus motivating all workers to productive and efficient work.
Requirements for her
The following are the requirements that must be met by differentiated remuneration of staff of an organization or enterprise, which stimulates labor activity:
- Provide social security for the employee.
- Encourage the employee to improve the quality of work.
- Be open to control.
- Workflow should not be heavier.
- Be clear to the employee.
- Be personalized.
- The grounds should be objective criteria for evaluating the cost of labor of an employee.
What tools are used to differentiate wages?
Tariff system
The main tool for differentiating salaries is the tariff system, which includes a set of different standards: district coefficients, tariff networks, tariff rates, tariff qualification directories, various tariff allowances and surcharges intended for use in setting salaries and employee rates, as well as in determining the size of their bonuses for the performance of work. An example is the Unified Tariff Schedule, the UTS of the RF, which is used to pay employees their labor. Funding comes from all levels of budgets since 1992. In the differentiation of salaries of employees used staffing and salary schemes.
What is a salary scheme?
Salary schemes are the form of regulation of salaries for employees, depending on the size of the enterprise and the magnitude of several indicators of its activity. This scheme is characteristic of the administrative-planned economy, when the salary of specialists, managers and other employees was established centrally. Salary schemes are currently used in municipal and state enterprises. In private enterprises, the wages of employees are established through staffing.
Differentiation of wage rates and staffing
Under the staffing is understood the tables developed by organizations and enterprises and reflecting the names of employees, the number and structure of managerial staff, the fixed official salary of employees or the salary fork (maximum and minimum salaries for each position).The Government of the Russian Federation determines the size and procedure for remuneration of chief accountants who are financed by the federal budget, managers and deputies. In all other organizations, the work of managers, chief accountants and deputy managers are paid in the amount agreed by the parties to the employment contract.
Climatic conditions
To compensate for the increase in the cost of livelihoods of regions with adverse climatic conditions, the state sets district coefficients by which the estimated value of the tariff part of the salary increases. District coefficients are differentiated for different regions of the country with an interval of 1.1-2.0. And the less favorable the climatic conditions, the higher this coefficient. In addition to factory tariff systems, wage differentiation is carried out at the enterprises using labor complexity factors. Modern pay systems are that extreme wage differences can be determined. Intermediate ranks, covering employees of all positions, are established between the extreme ranks.
The number of categories that are used in the tariff systems of factories, in practice, varies from 6 to 26. Sometimes, a plug for salaries is installed in each category, that is, their maximum and minimum values within a specific category, which is preferred by experts. At enterprises under different working conditions, including various types of allowances and surcharges to the tariff part of labor remuneration. Their goal is the most complete assessment of the characteristics of labor, its severity, intensity, urgency, importance, danger and other conditions.
Allowances and surcharges
Some allowances and surcharges at enterprises of any form of ownership are required. Their payments are established by the Labor Code and guaranteed by the state. Other allowances and co-payments are applicable in various fields of employment. The specific size of the allowances and surcharges are agreed upon at the enterprise, however, in most cases they are also mandatory. This is the differentiation of wages in Russia.
For the achievement of any specific labor indicators, rewards are rewarded, that is, bonuses that can be part of the salary system, such as piecework bonus, time bonus, accordion, indirect bonus, piecework progressive. Bonus-related issues must be reflected in the bonus provisions developed for each enterprise and its divisions and approved by the head of a particular enterprise. It should also be noted that in addition to the listed salary systems for employees of organizations, the following are used: the system of floating salaries, the non-tariff system, the salary system based on commissions. The coefficients of wage differentiation depend on this. Also, the amount of incentive payment should be dependent on 2 factors:
- Justified differentiation of wages of employees of higher and lower qualifications. The principle of social justice comes to the fore here.
- The initial value of labor remuneration is the cost of payment per unit of work performed with its piece-wise varieties, the hourly (monthly, daily) wage rate of the employee, the lowest qualification in the time wage variety. In this regard, it can be argued that the problem of the level of wages is solved by the size of its initial value.
The basis of the wage policy of the company should be these two conditions. On a non-tariff basis, there are no restrictions on finding ways to pay salaries. Therefore, this area has several methods that are sometimes unique. In addition, in various divisions of the same enterprise you can find different payment methods. This is reflected in the system of differentiation of wages of workers.
findings
When deciding on the method of remuneration in a unit or company, the main thing is:
- The salary system should be built in accordance with the adopted legislation.
- It is necessary to take into account the features of production and organization of labor, as well as the features of products, services, work, structure and composition of the staff as much as possible.
- The payment system should be introduced exclusively according to the developed project for the organization of wage payments, which will include an experimental verification of wages and its subsequent adjustment if necessary.
- Personnel should be involved through a wide discussion of projects and rewards employees for active assistance in developing and introducing a new payment method.
The reasons for the differentiation of wages are obvious.
In the end, wages are not only the payment of labor results. Its role is expressed in a stimulating effect on a person: the payment procedure, the amount of payment and the elements of the organization often develop people's interest in work, provide motivation for effective, productive work. The establishment of the necessary differences in wages, depending on qualifications, complexity, conditions and areas of application of labor, intensity - this requires differentiation of wages.