Impact of Minimum Wage on Employee Performance: A Case Study on Sainsbury

This report analyzes the impact of changes in minimum wage rate on the performance and financial condition of employees, with a focus on Sainsbury. It examines the relationship between minimum remuneration changes and worker morale and performance. The study also reviews relevant literature, research methodology, and provides recommendations for managing the minimum wage system effectively.

Minimum wage in UK

Executive summary
The report highlights the trend of minimum wages in past years in UK and its effect on the
productivity of the workers. The study shows that there is direct relationship between minimum
remuneration changes and morale or performance of workers in organizations.

Table of Content
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Rationale......................................................................................................................................4
Hypotheses.......................................................................................................................................5
Literature review..............................................................................................................................5
Research methodology.....................................................................................................................6
Conclusion.......................................................................................................................................7
REFERENCES................................................................................................................................9

Introduction
Topic- To analyze an impact of changes in minimum wage rate on the performance
and financial condition of employees: A study on Sainsbury
Background
Minimum wage means as the remuneration that the supervisor need to pay to wage
earners for work performed by them during the given period of time, that could not be reduced
through collective agreement or the individual contract. It could be set by the competent
authority, statue, wage council and board. It could also be set through giving the force of the law
to the provision of the collective agreements. The present study is based on Sainsbury, a largest
retail sector company operating its business as supermarket and grocery stores in UK.
Furthermore, the study involves review of the research problems in detail and application of
different research approaches for formulating the study reliable and valid. The proposal of the
company used to highlights the Aim and objective of the study, after that report goes on to
highlights the view point of different author related to the topic, after that report highlight the
different methodology which has been used to carry out the outcome of the project. In the end
report summarized the proposal.
Aims and Objectives
Aim
To assess an effect of modifications in minimum wage system on employee’s performance
within the organization: A case study on Sainsbury
Objective
To articulate an understanding relating to minimum wage rate system in UK
To determine influence of minimal wages on the performance of staff
To identify laws and legislation introduced with regard to minimum wage in UK
To recommend appropriate measures for managing the system of minimum wage in an effective
way
Rationale
The purpose behind preparing this study is to investigate the minimum wage system followed by
an enterprise within UK. This has been seen the current and major issue which is been faced by
companies in setting up the minimum wage in order to enhance the productivity level of the
workers effectively and efficiently. Another reason behind selecting these topic for conducting
the research was that scholar is having good sort of interest linked with the topic of the project,

as a result scholar was very keen to develop the knowledge on the same topic so that it can prove
very crucial in the future as well.
Hypotheses
 H0- There is no significant difference in the mean value of employee’s financial
condition and wage rate considered by Sainsbury
 H1- There is a significant difference in the mean value of employee’s financial condition
and wage rate considered by Sainsbury
Literature review
Minimum wage rate is generally define as a minimum wages which company is legally liable or
authorized to pay to the employee working in the organization. Not following the same rule in
the organization used to create the variety of the issue for the company in the long run.
Reeves and et.al ( 2017) reviewed that minimum wage in UK shows an increasing trend
in the recent years at yearly rate between 20-30 pence for an hour since the year 2009. The wage
rate is been computed at hourly rate but is been applied to all kinds of work in UK, even in
scenario where employee are not been paid at per hour basis. Generally the minimum wage rate
in the UK is being calculated by the way of working out the amount that has to be paid to the
worker above the basic rate which individual has to pay to cover all the basic need of individual
and his or her family. The national UK wage rate system is mainly runs on basis of wage an hour
that is applicable to all the jobs in UK. It is mandatory that all the employers in UK are requiring
paying at least minimum remuneration to workers who are under or up-to 25 years old. For the
workers who are older than 25 yrs, national UK wage living rather applies, this seems as approx
50 pence greater than NMW.
In opinion of Atkinson and et.al. (2017), minimum wages not just enables in reducing the
wage dispersion & channel productivity attained in higher amount of wages, but it also
contributes to high productivity among labor at enterprise as well as entire economy level.
However, without getting minimum wage, the workers that are low-skilled would not know
about how much to expect at the time when they move out of job. When the government decides
for raising minimal wage rate, it would be affecting all the workers who are been getting more
than minimum as they feel unfair that the employees who are getting minimum wage would be
receiving higher pay which in turn results to drop in firm’s morale. Reeves and et.al ( 2017) has
been analyzed by the author that implication of minimum wage rate system in the organization
has helped the nation and government of nation to safeguard the different right of the individual
in the market. As with the help of the minimum wage rate all the employee are more informed

about the pay which they are liable to get, this has eventually help the nation in safeguarding the
right of basic need and right to inform of the individual in the market in a long run.
Kronenberg, Jacobs and Zucchelli (2017) viewed that there are several legislations
introduced by government in relation to minimum wage in UK that involves National minimal
wage Act 1998, which is applied to all the employees who are having contract for doing work on
personal basis rather than for the client or customer. Moreover, wages council Act of year 1945
is also a law developed which is applied to sect-oral workers or least amount of wages employee.
There are variety of different way through which impact of minimum wage rate can be
maintain in the organization as maintaining the same used to bring the variety of the benefit for
the organization as well. Atkinson and et.al. (2017)highlights that hiring a compiling individual
in the organization can help the organization in maintaining the impact of minimum wage rate in
the organization. At the same time another way which was highlighted by the organization was
to bring a good sort of clarity in the organization in term of wage rate so that employee resistance
can be maintain in the great way in the organization.
Research methodology
Type- Process of understanding the issue and finding out the best outcome of the issue
which is being faced by generally known as Research. Two research type which is generally
renounced in the market is Qualitative research type and Quantitative research type. Quantitative
research type looks at finding the numeric data and forming outcome on the same basis at the
same time Qualitative research data used to collect the non numeric data and on the basis of
same outcome is generally derived on the same basis. a In this study scholar will make use of
quantitative method which would help the in finding accurate results as it involves application of
statistical and mathematical tools for analyzing the effect of minimum wage in overall UK.
Philosophy & approach- Research approach is regarded as making variety of the
assumption in regards of the way through which variety of the information can be gather or
analyzed to find out the outcome of the study as well. Inductive research approach and deductive
research approach are two kind of research approach which is regarded as most preferred
approach to find out the outcome of research. Referring to this study, an investigator would be
using deductive approach as it is the most suitable method for making qualitative analysis
(Lenhart, 2017). Moreover, in this positivism philosophy will be used as it helps in developing
adequate hypotheses in relation to assessing impact of the minimum remuneration on the
workers productivity and performance.
Data collection- Outcome of the study is overwhelmingly is depended upon the data
collected with the help of different data collection tool. Primary and secondary are two most
preferred and relevant data collection tool. Primary data collection stands for collecting the
information for the very first time. At the same time secondary data is the one which is collected

by source who have collected the data for their purpose in past. With respect to this study,
secondary sources of the data will be used for gathering information through reviewing books,
articles and journals for drawing inferences appropriately.
Sampling- Sampling is define as a process in which number of the respondent is selected
from the population base, Sample size is generally used to selected to find out the different data
in the study. There are two commonly used sampling technique to find out the sample size of the
study. Two sampling method are probabilistic and non probabilistic sampling, probabilistic
sampling generally provide all the respondent to get selected in the cut, at the same time non
probabilistic sampling size do not provide all the respondent with a chance to get selected in the
sample size of project.Under this study, purposive sampling will be used which is the type of
non-probabilistic sampling where sample is been chosen based on subjective judgment and no
equal chance is been given to population of being selected.
Data analysis- Data analysis is the process of analyzing the variety of the different sort of
the data which has been collected with the help of the data collection tool in the research. In
context of this research, SPSS will applied which is software that helps in defining the
relationship between two or variable in the study through the use of regression and correlation.
This leads to presentation of the findings in adequate manner.
Ethical Consideration: To conduct the research, researcher has make sure that good sort
of ethicality is being maintain throughout the course of the research (Kumar, 2019). As scholar
has taken the consent of all the respondent before collecting any sort of the information from the
individual in the research. Also scholar in the study has make sure that there is good sort of the
confidentiality has been maintain through out the research. These has eventually helped the
researcher in getting good support at the time it is require from the respondent side.
Limitation: There were variety of the limitation which was identified by the scholar at the
time of conducting the research. One of the same was that time allotted to complete the research
was very limited which has created a good sort of the issue for the organization with the help of
team work company was able to complete the project on time. Another limitation which was to
select the best source through which different data can be collected in the organization but with
the help of tutor I was able to complete the project with good efficiency (Humphries, 2017).
Conclusion
The above report concludes that it is very important for the firm to pay minimum amount
of remuneration to its workers as it is seen as source of survival for them and is a means to run
their family in effective and efficient manner. Minimum wage impacts various things in the
organization and the economy as a whole as it directly hampers the working manner of the
workers which in turn reduces the growth of entire economy. Moreover, there are several
legislations which is been introduced by the government in relation to prevent the right of

workers in getting their wages for their performance and if not paid then they can sue the firm
which leads to penalty and compensation.

REFERENCES
Books and journal
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.
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.
Lenhart, O., 2017. Do higher minimum wages benefit health? Evidence from the UK. Journal
of Policy Analysis and Management. 36(4). pp.828-852.
Reeves, A. and et.al., 2017. Introduction of a national minimum wage reduced depressive
symptoms in low‐wage workers: a quasi‐natural experiment in the UK. Health
economics. 26(5). pp.639-655.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage
Publications Limited.
Humphries, B., 2017. Re-thinking social research: anti-discriminatory approaches in
research methodology. Taylor & Francis.