An employee’s initial wage rate is determined by
a. the employee’s measured productivity.
b. whether the employee is male or female.
c. the experience, qualifications, and expected performance of that employee.
d. the results of a wage survey pertaining to the employee’s job.
e. his or her wage rate at his or her previous job.
The Correct Answer and Explanation is :
The correct answer is c. the experience, qualifications, and expected performance of that employee.
Explanation:
An employee’s initial wage rate is typically determined by a combination of their experience, qualifications, and expected performance. These factors are critical because they directly influence how well an employee can perform their job duties and contribute to the organization. Here’s why each of these elements plays a key role:
- Experience: An employee’s previous work experience is one of the most significant determinants of their wage rate. Experienced employees are generally able to perform their duties with more proficiency and require less training than less experienced workers. Employers often reward experience by offering higher wages, as seasoned employees can be more productive and require less supervision, which benefits the company in the long run.
- Qualifications: This includes an employee’s educational background, certifications, and any specialized skills they may possess. For example, someone with a degree or certification in a relevant field may be considered more valuable and, therefore, may command a higher wage. Specific qualifications like professional certifications or technical skills can also increase an employee’s wage rate, as these credentials may make them better suited for complex tasks.
- Expected Performance: Employers often consider an employee’s potential for high performance in the role. If an employee has a track record of exceeding expectations or shows great promise during interviews or probationary periods, employers may offer a higher starting wage to secure their talent. This is particularly true for positions where high performance is tied to the success of the organization.
Why other options are incorrect:
- a. Measured productivity: While productivity is important, it typically influences pay increases or bonuses, not the initial wage rate.
- b. Gender: Wage rates should not be based on gender, as this would be discriminatory and against labor laws.
- d. Wage survey: Wage surveys provide insights into industry norms, but they are not the sole determining factor in setting an individual’s starting wage.
- e. Previous job wage: While an employee’s prior salary can influence negotiations, it is not the primary determinant of their initial wage. Other factors like qualifications and performance potential matter more.