Reward Management Report
Added on 2020-12-30
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REWARD MANAGEMENT
CONTENTSINTRODUCTION...........................................................................................................................1CRITICAL ANALYSIS..................................................................................................................1What is National Living Wage?...................................................................................................1Difference between the National Living Wage and the National Minimum Wage.....................2Introduction of National Living wage and PwC..........................................................................3Reactions on National Living Wage............................................................................................4Advantages and the disadvantages of National Living Wage......................................................4CONCLUSION & RECOMMENDATION....................................................................................6REFERENCES................................................................................................................................8
INTRODUCTION Talking about the living wage, it is significantly attaining momentum in the UnitedKingdom. More and more companies are focusing and committed to pay their employee theliving wage and the number of these companies has doubled during 2014 and now. The topic ofliving wage has relevance all around the world (Fairris and Reich, 2005). However, in thiscurrent research report focus will be made on the United Kingdom. The report will criticallyanalyze the introduction of National Living wage and will discuss the potential differencebetween living wage and minimum wage. Further, it will also discuss the introduction of nationalliving wage and the associated advantages and disadvantages of the same. For this research, acase study of PWC will be taken under consideration. The case study focuses on how thecleaning operatives are being valued at the firm and became part of the wider team. It alsofocuses on how living wage has helped them to remain motivated and to provide a high level ofservice. Based on this case study of PWC, the report will analyze the impact living wage has onthe life of employees and performance of the company.1
CRITICAL ANALYSIS What is National Living Wage?Throwing light towards the National Living Wage, it is defined as an obligatoryminimum wage being payable to the workers aged 25 years in the UK. This came into effect in1st April in the year 2016. The living wage is dependent on the amount an individual requires toearn to meet out his basic cost of living or necessities. Further, these living costs varies from oneto another, there are different rates for London and the rest of the United Kingdom. The rate isbeing promoted by the Living Wage Foundation and has received political support from allacross the world but limited amount of validation from the employees (Kai, 2009). The PrimeMinister ‘David Cameron’ has confronted that he supports the idea in principle. In addition tothis, the Labor Leader ‘Ed Milliband also favors the same and has made it a part of manifesto oftheir party for next election. There were many companies who have supported the living wageand are paying to their employees such as Greater London Authority, PwC etc. As of April 2018,the rate of national living wage is £7.83 per hour for individual aged 25 years and around £7.38for those aged 21–24 years. Further, the rate is £5.90 for 18–20 years old individual and £4.20for those who are under 18 years of age. All these rates are expected to rise to at least £9 per hourby 2020. Difference between the National Living Wage and the National Minimum WageBoth the terms ‘Minimum Wage’ and ‘Living Wage’ are being utilized for describingcertain aspects of wage and salaries, as they have connection with the benefits extended to theemployees. There are many confusions about what it actually means occurs continuously andthus, it is quite essential define the difference between both these types of wages. Principally, aminimum wage is a set amount per house that the owners of the firm are required to pay to theirworkers within certain classes of employment (The minimum wage, 2018). It is applied to theemployees who fulfill the qualifications being put in place by the wage laws that are applied in aparticular jurisdiction. On the other hand, a living wage is defined as the amount that a workermust earn so as to enjoy and equitable standard of living within a particular area and region.Focusing towards one of the major difference between a minimum wage and a living wage is thatminimum wage is often fixed and living wage is variable. For instance, a national government2
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