Attracting Employees using Wage Differential

Employee Benefits
Knowledge Center

 

Next Topic

Employee Benefits > Forum > Attracting Employees using Wage Differential

Attracting Employees using Wage Differential
James Antwi, HR Consultant, Swaziland, Member
A wage differential, also called "compensating differential" or "compensating wage differential" or "equalizing difference", is defined as the additional amount of income that a given worker must be offered in order to motivate her to accept a given undesirable job, relative to other jobs that worker could perform. How can we use the theory of 'wage equalizing differentials' to attract skilled workers to remote and rural areas in low income countries? Is the mode of application the same in both developed world and developing economies? (...) Read more? Sign up for free
 

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

    Log in

 
Compensating Differential Incentive Pay
Mohun Aujayeb, HR Consultant, Mauritius, Member
If a worker is asked to perform a work/job/task that is normally not performed by others in that group/grade, it makes sense to additionally compensate that worker. Such workers who are exposed to insalubrious and risky conditions which may affect health are generally given 10-20 % as incentive to attract and retain them on that particular job.
Workers exposed to unfavourable conditions like foul odor, radiation risks, etc. are also given incentive pay in the public sector in Mauritius.
 

 
Negative Compensating Differential
Jaap de Jonge, Management Consultant, Netherlands
(...)
 

 
Attract Workers by Offering More Pay
Jaap de Jonge, Management Consultant, Netherlands
(...)
 

         
Special Interest Group Leader

Interested? Sign up for free.


Employee Benefits
Summary
Forum
Best Practices


    Employee Benefits
    Knowledge Center

     

    Next Topic



    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    2020 12manage - The Executive Fast Track. V15.3 - Last updated: 22-1-2020. All names of their owners.