Salary Administration

Salary administration or employee income is dependent upon many variables.

It can be different from a business perspective or government perspective. It can also be different from a union or non-union perspective. Income is also regulated by the state, federal and local government. Independent contractors are another category that is used to gloss over government or business fixed salaries.

Promotion and income administration present an awesome strategic management problem. The employee income should be based upon employee credentials, performance, classification, position description. For instance a applicant for a teaching position that has a BA degree will be paid less than starting wages for a applicant with a masters degree. Also the applicant will be paid less than an applicant with PhD degree.

Many governments and businesses have fixed pay scales that are based upon cost of living increases and whether the position is professional or non-professional. Many of them use grades or steps to depict the wages. Also some professional positions are based upon certifications that are regulated by government or private professional organizations like the American Medical Association or National Association of Real Estate.

Unions such as the Teamsters, AFL-CIO or NEA negotiate salary contracts and subsequent employee and worker promotion. Wages of union shops tend to be higher than wages of non union shops. The union’s power is based upon the strike of threat of strike.

Many business employees negotiate wages on a case by case basis. There are many instances where information about worker wages is considered confidential. This approach is effective in organizing against union organizers. Most government pay scales are disclosed to the public and all union shops salaries are made public.

The U.S. Congress from time to time passes legislation about minimum pay scales. The President has to agree to Congress’s legislation about the minimum pay scale or two thirds of Congress must vote to override a President’s veto. All business and government must comply with the minimum pay scale.

The key terms for wage administration are the following:Salary; income; grade; step; cost of living; fortune; bonus promotion.

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