Sainsbury's: Minimum Wage, Regulations, and Impact

This report provides an analysis of minimum wage regulations and their impact on Sainsbury's. It begins with an introduction to minimum wage and its significance, followed by a discussion on the difference between minimum wage and living wage. The main body of the report delves into the legal regulations governing minimum wage, including the National Minimum Wage Act 1998, National Living Wage, and apprentice rate. It then examines the costs and benefits of minimum wage for Sainsbury's, such as increased employee loyalty and reduced financial penalties, while also addressing issues like reduced profit margins and increased complexities. The report further discusses the costs associated with minimum wage and prioritizes recommendations for Sainsbury's, emphasizing the importance of maintaining efficient economic growth and implementing computerized approaches. The conclusion summarizes the key findings, highlighting the importance of providing a proper salary structure to ensure employee economic security and minimize penalties. The report references various books, journals, and online sources to support its analysis.

Management People

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Minimum wage and living wage-................................................................................................3
Legal regulations on minimum wage-.........................................................................................3
Costs and benefits to organization on minimum wage-...............................................................4
Issues faced by organization-.......................................................................................................4
Cost-.............................................................................................................................................5
Prioritisation of any recommendation-........................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Minimum wage is the minimum amount of salary which is being provided by the
governments to the employees. Sainsbury is the chosen organization for the evaluation in this
report. The company tend to provide retail option of various products to the customers at an
affordable pricing. Evaluation on the minimum wages which is being provided by the
organization to the customers is being done in this report. With that analysis on benefits and
issues which are being faced by the organization in order to provide its services to the customers
is also being done within the report.
MAIN BODY
Minimum wage and living wage-
Minimum wage is the organizational approach in which the company tend to ensure that a basic
salary structure is being provided to the employees. Through which they are being able to fulfil
their requirements and also at the same time are being assures that a proper exchange of skill
with capital amount is being done (Atkinson and et.al, 2017). This is an important step for the
organization because through this step it can ensure its employees that company is able to fulfil
their requirements, through which their loyalty towards Sainsbury is also being increased.
The amount of wage which the organization tends to provide to the employee is being
segmented on various different aspects. This is done on the factors like evaluation on the job
profile at which the employee is working within the Sainsbury. Thus changes in wages are being
done on the bases of changes in job profile, because of increasing complexities at which the
employee is working within the company. This is also important because the employees on the
higher position are responsible for managing the organizational operations and company’s
performance within the market-place. Thus by proving a proper working condition company
ensures that efficient competitive edge is being achieved.
Legal regulations on minimum wage-
Government tend to develop several rules, through which it ensures that a minimum wage is
being provided to the employees, by which they are able to achieve a quality of life. This is also
important because once the employees are having an efficient economic background then this
result in increased activities of buying and selling (Chong and Khong, 2018). This increased cash
flow will generate high revenue and due to which legal legislations are being developed on
minimum wage. Following are the governmental regulations on minimum wage.

 National Minimum Wage Act 1998- As per this law employee from the age group
of 23 are to be provided minimum wage of £8.36. This is the governmental
approach by which it ensures that its citizens are able to achieve an efficient
economic growth by which their requirements are being fulfilled.
 National living Wage- This is the governmental policy which states that a
minimum of £8.21 has to be provided to employees, through which they are being
able to maintain a high quality of sales (Acas working for everyone, 2021). This
legal law for minimum living wage was being developed by the governments,
through which it ensures that a base economic condition is being fulfilled despite of
increasing inflation rate.
 Apprentice Rate- This is the type of minimum wage in which a proper salary
structure is being developed for individuals which are working as an part time
options, due to which often work as an apprentice.
Costs and benefits to organization on minimum wage-
There are several advantage which the organization tend to achieve by providing wags on
the bases of minimum wages, being established by the government. Following are the different
advantages which the organizations often achieve by following the minimum wages.
1. Increased employee’s loyalty towards the company- When employees are able
to achieve a proper salary structure then they are less likely to search for better
alternatives and hence this results in increased loyalty towards company.
Reducing chances of facing financial penalties- Sainsbury has to guarantee that salary
structure is provided in such a way that company is able to minimize the threat of facing
financial penalties by the government (Johnson, 2017).
2. Motivate employee to implement improvisation within working process- By
proving a proper pay structure to the employee, organization ensure that they are
being influenced to implement improvisation within working process through
which new products can be provided to customers.
Issues faced by organization-
Despite of several advantages there are various issues as well which the company has to face in
order to provide minimum wage to the employees. This happens because in order to maintain its
sustainability within the market-place company has to ensure that it is able to achieve an efficient

economic growth. Through this it make sure that it is able to continue its operations and since
organization has to follow the minimum wage regulation. Due to which Sainsbury’s economic
growth is also being affected, following are the issues which are being faced by organization in
providing minimum wages to the employees.
Reduced profit margin- Since Sainsbury has to provide a minimum salary to the employees,
due to which it has to ensure that efficient revenue is being collected (Kronenberg, Jacobs and
Zucchelli, 2017). Despite of this the overall profit margin of the organization is being affected
and due to which negative impact upon sustainability is also being increased.
1. Increased complexity in providing salary on the bases of employee age group- Since
the minimum wages are being decided on the bases of employee’s age group, due to
which overall work complexities are drastically being increased.
2. Negative impact upon employee motivation- Since the employees are being assured
that they are able to achieve the minimum salary because of which their level of
engagement in target achievement is also being affected.
Cost-
Sainsbury has to make sure that it is able to maintain an efficient economic growth, through
which it tend to ensure that it is able to achieve a high economic growth. Therefore, the
employee salary structure for the company is being done in such a way that it is able sustain, its
high performance. Through which it ensures that it is able to ensure that it is being able to
maintain high work productivity, while providing new products to the customers (Sellers, 2017).
This is important for the organization, due to the fact that employees are responsible for
implementing the organizational developed strategy on the ground level. Due to which company
has to guarantee that cost of developing new products is also low and also at the same time
organization has to assure that it is able to provide new products. Through this new customers
can be attracted towards the organization by which organizational sales can be increased.
Prioritisation of any recommendation-
Sainsbury have to assure that it is able to provide a basic salary to the employees and with
that has to maintain an efficient economic growth. Due to which has to ensure that it is able to
achieve a basic revenue collection base line and once it is ensured that a basic salary is being
achieved. Then on that base has to implement employee recruitment, through which overall work
productivity can be increased.

With that company also has to make sure that proper computerised approach is being
implemented by the company. Through which it ensures that it is being able to provide basic
salary approach to employees on the bases of government developed strategy and through which
products can be developed by which strong economic growth can be achieved (Swaffield and
et.al, 2017).
With that it can also be recommended that organization has to assure that it is able to
implement appropriate improvisation within its working process, through which it tend to assure
that it is being able to provide products such that a clear identification about the organizational
offering can be achieved by which chances of goal achievement can be increased.
CONCLUSION
From the above evaluation it can be concluded that organizations have to make sure that it
is able to provide a proper salary structure, such that employees are being assured that they are
having an sufficient economic growth. While by providing the salary as per legal legislations, as
per the governmental criteria it assures that it is able to minimize the probability of facing
penalties for not following the government developed rules.

REFERENCES
Books and journals
Atkinson, A.B. and et.al, 2017. Reducing poverty and inequality through tax-benefit reform and
the minimum wage: the UK as a case-study. The Journal of Economic Inequality. 15(4).
pp.303-323.
Chong, E. and Khong, F.A., 2018. The living wage: Beyond making ends meet. Central Bank
of .Malaysia, 16.
Johnson, M., 2017. Implementing the living wage in UK local government. Employee Relations.
Kronenberg, C., Jacobs, R. and Zucchelli, E., 2017. The impact of the UK National Minimum
Wage on mental health. SSM-population health. 3. pp.749-755.
Sellers, P.J., 2017. The UK living wage. Employee Relations.
Swaffield, J. and et.al, 2017. An evaluation of the living wage: identifying pathways out of in-
work poverty. Social policy and society.. 17(3). pp.379-392.
Online
Acas working for everyone, National minimum wage entitlement, 2021 [Online]. Available
through:< https://www.acas.org.uk/national-minimum-wage-entitlement >
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