Low Wage Rate in Organization

Running Head: LOW WAGE RATE IN ORGANIZATION 1
Low Wage Rate in Organization
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Introduction
Employees in the organization are faced with various issues which impact negatively on their
effectiveness in delivering services. For employees to work effectively, they need to be paid well
in order for them to be able to meet their needs. Most of the organization has failed to meet this;
therefore they pay workers a low wage that cannot sustain them. The outcomes of these entail
little efforts in their jobs as well as low quality in service delivery. If the organization cannot
meet the requirement of the minimum wage to the employees, it gives an implication of high
chances of such organization to fail. The case has seen in the US whereby nearly 40% of the
workers in the United States earn less than $15 an hour as demanded by the low wage workers
movement. They, therefore, experience low wage rate. It is the duty of the government to
intervene and ensure that the minimum wage requirement is met in order to protect the welfare of
the workers and put to an end the issues of low quality in services delivered in the organizations
whether in public or private sectors (Piketty, 2014). The paper gives an analysis of low wage is
as an employee issue, identifying its cause, mitigations, manifestations, and recommendations.
The problem of the low wage rate
The issue comes as a result of organizations pay its employees poor wages that is of
substandard to the requirement of the minimum wage. Most countries have failed to meet the
minimum wage requirement of the hourly wage of $7.25 as the federal law stipulates (Rani et al.
2013). The overtime distorts need higher pay as well. Failing to meet this obligation as stipulated
in the law unpunished, give employers an advantage to break the law as workers continue to
suffer. It has given room for long-term abuses to be upheld in certain services industries for

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instance in restaurants, landscaping, and cleaning. Advocating for low pay of the employees by
the organization is the main reason behind the increased cases of hunger and sufferings since
they lack money that is owed to them. Also, states in failing to enforce wage laws are the reason
as to why there is the problem of income inequality which in constant increase, therefore, needs
prompt measures in order to stop this problem. Studies indicate that the failure of touching the
requirement of the minimum wage touches every part of the society as well as the corner of the
country (Rubery & Grimshaw, 2011).
In the United States, the six states in the south (Georgia, Alabama, Louisiana, Tennessee,
South Carolina and Mississippi) have failed to adhere to the requirement of the minimum wage
as well as Florida, being the seventh state. The concerned institutions propagate the issue of low
wage rate due to the fact that cases are picked selectively by the organization, it also lacks
resources as well as being slowed by the bureaucracy. The problem is still profound due to the
fact that many politicians who could support the requirement of the minimum wage to be
attained by the organizations are easily swayed especially when given bribes. It, therefore, makes
it difficult to fight the issue in contemporary societies. Money is unavailable in the organization
to pay employees well since it is stolen right at the start of the projects (Schäfer & Gottschall,
2015).
Effects of low wage rate to the employees
The economic conditions, the changes in the organization and the demand for the companies
deliver best services and products to the clients affect the ability of the employer to compensate
the workers through standard wages, therefore, leading to low pay. Low wages have negative

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effects on the employees of the organization, for instance, anger due to disappointment, stress,
and low morale as well as contribute to unemployment. Regarding the aspect of anger,
employees believe that they should be earning more pay in relation to the services they give to
the organizations. They, therefore, exhibit the signs of dissatisfaction. This results in poor work
relationships with their bosses, they end up wasting time thinking of their managers’ high wages
as they languish in poverty. Employees in such instances develop anger that in turn affects their
delivery of services (Sabadish & Mishel, 2012). The existence of conflicts in an organization
leads to reduced employees productivity since nobody is ready or willing to help the other.
Employees morale goes down in such instances, and this results in the resignation of the talented
and experienced employees of a company.
Secondly, employees who don't earn much that can take care of their welfare are prone to
stress due to financial worries. Most employees have the agenda of working as they meet their
monthly obligations. Salaries that cannot fit such are likely to stress employees on the way such
needs will be met. The stress affects the families who in most cases spill to the workplaces as
well fostering low morale and productivity. The irritability and frustration created due to
inability to meet the needs of the families by the employees' impact negatively on their self-
esteem and overall well-being (Ehrenberg & Smith, 2013). Additionally, employees with low
wage rate have low morale which affects the speed of delivery of services as well as the quality
of services delivered. The low morale makes the employees feel worthlessness and despair which
id dangerous at the place of work. Lastly, low wage rate results in increased cases of
unemployment in the organizations since employees quit their jobs especially in the cases of not
receiving the compensations they are entitled to. Low levels of motivations through well-paid