What are the 3 main functions of wages? The role of wages in a market economy
Functions wages
reproductive
ensuring the full recovery of the employee's costs and creating conditions for his normal life
stimulating
wages - a means of motivation through the establishment of a quantitative relationship between the amount of payment and the quantity, quality and results of the work of employees
Social
wages should reflect the social status of the employee and solve the problem of social justice
Formation of solvent demand
the impact of wages through the effective demand of the population on the volume and structure of goods and services produced and, to a large extent, on investment policy
Regulatory (resource-accommodating)
placement optimization labor resources by regions, sectors of the economy, enterprises through the impact on the demand and supply of labor
Accounting and production
reflects the degree of participation of living labor in the formation of the price of the product, its share in the total production costs.
Motivational
the development of creativity in labor and moral and prestigious attitudes, forms the moral qualities of workers, their labor morality.
41. The system of regulation of wages and its elements.
From requirements economic laws a system of principles for regulating wages can be formulated, including:
The principle of payment according to costs and results. For a long period of time, the entire system of organizing wages in the state was aimed at distribution according to labor costs, which does not meet the requirements of the current level of economic development. At present, the principle of payment according to costs and results of labor, and not only according to costs, is more stringent.
The principle of increasing the level of wages based on the growth of production efficiency, which is primarily due to the action of such economic laws as the law of increasing labor productivity, the law of rising needs. From these laws it follows that the growth of wages of the worker should be carried out only on the basis of increasing the efficiency of production.
The principle of advancing the growth of the productivity of social labor in comparison with the growth of wages, which follows from the law of increasing labor productivity. It is designed to ensure the necessary accumulation and further expansion of production.
The principle of material interest in increasing labor efficiency follows from the law of increasing labor productivity and the law of value. It is necessary not only to ensure material interest in certain results of labor, but also to interest the employee in improving labor efficiency. The implementation of this principle in the organization of wages will contribute to the achievement of certain qualitative changes in the operation of the entire economic mechanism.
Typically, wages are regulated and monitored by the competent government authorities.
42. State regulation of wages, its main directions.
State regulation of wages - implementation of measures aimed at implementing the principle of conformity between the measure of labor and the measure of its payment, ensuring equal pay for equal work.
Directions of state regulation of wages:
Legislative regulation of the conditions and procedure for remuneration, enshrined in the Labor Code of the Russian Federation and other regulations
Regulation of wages of employees of the public sector of the economy based on the tariff system
Establishment of the minimum wage (SMIC)
Inter-district regulation using district coefficients and wage bonuses
Tax regulation through direct (income tax) and indirect (VAT, sales tax, excise duty) taxes
Wage indexation
Establishment of district coefficients and percentages of allowances
Establishment of state guarantees for wages.
There are three types of income and wage policies:
Controlling inflation through taxes and fiscal measures;
Revenue regulation based on government rules and regulations;
Trilateral cooperation policy.
Thus, the state implements measures to regulate wages at two levels:
Defines state. guarantees that ensure the interaction of all employers and employees in order to develop and agree on the terms of remuneration;
Directly implements state. guarantees established for employees of state organizations. sectors of the economy that are financed from the budgets of different levels.
The essence of wages is manifested in the functions that it performs in various phases of social reproduction. Salary is a multifunctional category. It has a variety of functions, the main of which in a market economy are: distributive, reproductive, stimulating, social, regulatory (resource-allocation), the function of forming solvent demand, pricing (Fig. 9.1).
Wages are one of the tools for distributing the created social product, along with profit, entrepreneurial income, rent, social transfers, etc. . Her distribution function consists in establishing the share of the worker in the created product and reflecting the share of living labor in the distribution of the consumption fund between employees and owners of the means of production.
reproductive function wages lies in the fact that its size should ensure the reproduction work force a certain quality level - meeting the needs of the workers themselves and their families. It should be noted that the ideas of employees and employers about the role of the reproductive function of wages can differ significantly.
Rice. 9.1. Basic functions of wages
A hired worker, offering his labor force on the labor market, expects that his wage rate will correspond to the "price of labor force" and will reimburse all the costs of its reproduction. The latter include the costs of food, clothing, housing, cultural and household and medical service, education and training, employment, migration of workers, their social needs, etc., covering all phases reproduction of labor force - its production, distribution, redistribution and use.
An employer interested in minimizing production costs seeks to limit the amount of compensation for labor costs only within the framework of direct labor process, i.e. one phase of the reproduction of labor power - its use. He considers wages not as a tool for the reproduction of labor power, but as a tool for compensating for labor costs incurred by the worker in the production process, as the "price of labor".
In a market where wages are based on the price of labor, ensuring its reproductive function means that wages, by definition, cannot be less than the subsistence minimum. In reality, a paradoxical situation has developed in our country, when the minimum wage approved by the state is many times less than the subsistence level. In particular, in the Samara region in the third quarter of 2006 the minimum established by the state wages (1100 rubles per month) amounted to 26.7% of the subsistence minimum budget, calculated on average per one able-bodied resident of the region. Below the value of the minimum consumer budget was the average accrued wages. All this indicates that wages in modern Russia do not fully fulfill their reproductive function.
Raising the minimum wage to the subsistence minimum and then to the minimum consumer budget is the most important task of the state's social policy.
Without an increase in the level of wages, it is impossible to fully implement and stimulating function . The latter involves establishing the dependence of wages on the quantity, quality and results of the work of workers and is aimed at encouraging the growth of production, improving its quality, improving the skills of workers, rational use all types of resources, securing personnel in the organization. The incentive function of wages is implemented directly in the organization through the effective application of various forms and wage systems, bonus systems, allowances, additional payments, additional payments and benefits and is embodied in the differentiation of wages according to the criteria of quality and labor efficiency. Such differentiation is opposed to the egalitarian approach to remuneration, which has a destimulating effect on workers, hindering the use of their labor and creative potential.
Wage differentiation, designed to promote productivity and labor efficiency, should be perceived by both employers and employees as fair and justified. Equal pay must be made for equal work, for equal work. Ensuring the fairness of wages is manifested social function wages. One of the founders of the scientific organization of labor and management, G. Emerson, characterized the importance of justice in the organization of wages as follows: “There is no question more difficult than the question of wages, and there is no area that would need justice more. ... Here we are dealing with the most dangerous explosive, for which the slightest spark, the slightest concussion is enough to overturn and destroy the entire building.
In countries with long-established market relations in the sphere of labor, “the problem of fairness occupies an important place in the relationship between the employer and the employee”. The theory of justice states that people subjectively determine the ratio of the salary received to the effort expended and then correlate it with the salary of other people doing similar work. If the comparison shows imbalance and injustice, i.e. a person believes that his colleague received a large salary for the same work, then he experiences psychological stress.
Consequently, the degree of validity of the current wage system can be judged by the efficiency of labor activity and the socio-psychological atmosphere in labor collectives, including the presence (or absence) of labor conflicts on the basis of different perceptions of the level and differentiation of wages.
The current differentiation (regional, sectoral, intra-industry) in wage levels cannot be recognized as normal, it exacerbates social tension. The reduction of this tension, the smoothing out of unjustified differences in wages, should be facilitated by further development and improving the collective bargaining process. The system of sectoral, regional and intra-company agreements and collective agreements should ensure differentiation of remuneration for labor of varying complexity and equal pay for equal work, acceptable to society.
Within the same profession, work of the same complexity and productivity in different enterprises and organizations should be paid the same. This is due not only to considerations social justice, but also the mechanism of functioning competitive market labor. However, at the present stage of the development of market relations, one cannot count on the fact that the principle of equal pay for equal work will be implemented automatically. In this regard, it seems to us actual problem the creation and development, along with branch unions, of the so-called shop trade unions, uniting workers of the same profession. If branch trade unions are to play an important role in the course of the collective bargaining process in the correct differentiation of wages various categories and professions of workers, then shop trade unions are called upon to monitor fair and equal pay for workers of the same professions in various industries.
Of great importance is also regulating (resource-accommodating) function wages. Depending on the ratio of supply and demand for labor, wages, in turn, influence the formation of the labor market, change the direction of labor flows, and largely determine the structure of employment.
In the conditions when state regulation in the field of placement of labor resources is reduced to a minimum, and the formation of an efficiently functioning labor market is possible only if each employee has freedom to choose the place of application of his labor, the desire to improve living standards causes the movement of workers in order to find a job that satisfies their needs to the maximum extent . The impact of this function is designed to ensure the movement of workers to the most important areas of activity for society and the most efficient industries and industries, meeting the needs of organizations in personnel of a certain professional and qualification composition, attracting workers to specific jobs, taking into account the needs of production and the interests of the workers themselves.
The function of forming effective demand of the population employee, is closely related to the reproductive function and, at first glance, has no independent significance. It is no coincidence that most authors of educational and scientific literature on the problems of labor economics and the organization of wages do not single out this function of wages as an independent one.
The connection between these functions is obvious and indisputable. But it is also obvious that these are different functions of wages and their separation as independent ones is expedient and justified. In contrast to the reproductive function of wages, which is aimed at providing workers and their families with the necessary vital goods for the reproduction of the labor force, the reproduction of generations and, thereby, the formation and functioning of labor market, the formation of solvent demand of the population is an important condition for the functioning market for goods and services.
key factor market demand for goods and services is the size of consumers' income. For hired workers the main. And sometimes the only source of income is wages. If its level is insufficient, a significant part of the needs of the working population remains unsatisfied due to the inability to pay (buy) certain goods and services. A decrease in effective demand compared to real needs (real demand) leads to a reduction in the production of many types of goods and services or to a significant decrease in their quality.
One more difference between the considered functions should be paid attention to. The reproduction of the labor force can be carried out not only at the expense of monetary, but also non-monetary income - all kinds of benefits, free services, food, food and clothing rations, etc. Performing a reproductive function, these non-monetary incomes of a part of the population reduce its effective demand in the market for goods and services, narrow the scope and disrupt the mechanism of its normal functioning. Sufficient in size and regularly paid employees wages are an important condition for the formation of solvent consumer demand and the normal functioning of the market for goods and services.
In everyday life, the short description salary as the price of labor power, which came from political economy.
Marx's salary
The term salary used to denote the price of a specific commodity - labor. In the process of functioning, the labor force creates value and additional value, which is appropriated by the capitalist. The worker who has sold his labor power must receive from the capitalist labor price equivalent, equal to or at least approaching the cost of labor. Otherwise, he will not be able to function as a full-fledged worker, since there will be no reproduction of the labor force.
The value of labor power is determined by the labor socially necessary for its reproduction, i.e., the cost of a certain amount of the means of subsistence necessary for the reproduction of labor power, namely food, clothing, housing, the costs of training and acquiring qualifications, as well as the maintenance of the worker's family. The economic essence of wages was first discovered by Karl Marx. He created a whole economic science - political economy, which reveals the mechanism for obtaining surplus value. The capitalist, using economic coercion, forces the labor power he has bought to function longer than the time necessary to reproduce its value, i.e., forces the worker to create surplus value. If the price of labor power is low, then fair wages, then the difference between the proper value of labor power and this low wage forms an additional source of capitalist profit. Salary depends on the size of the surplus value, on the level of development of the productive forces in a particular country, and on the organization of the working class, the strength of its resistance to the bourgeoisie. How wages are determined in RussiaIn the USSR, wages were determined different designs, since it was believed that there was no exploitation of the worker. In addition to the meaning that gave labor Code salary Several other definitions have been used:
salary in modern conditions interpreted more in the legal aspect. |
Salary as an economic category
I think modern is more important for us the meaning of wages. how labor price wages defined in political economy, but today a stable word form salary wikipedia defines in other words:
Salary (remuneration of an employee) - remuneration for work depending on the qualifications of the employee, the complexity, quantity, quality and conditions of the work performed, as well as compensation payments and incentive payments. (Article 129 of the Labor Code of the Russian Federation) Salary (colloquial salary) - monetary compensation (it is practically unknown about a different type of compensation) that an employee receives in exchange for his work.
Wage value in this definition coincides with the concept salary and colloquial form the salary(derived from salary word). Signs of wages, listed in the definition on the Wikipedia website, coincide with the concept of wages, which gives the federal law on wages.
Wages have many functions that represent a dialectical unity and only in the aggregate allow us to correctly understand the essence of wages, the contradictions in it and the problems that arise in the process of improving the organization of wages. This is important to emphasize because often the opposition of functions, the overestimation of some and the underestimation of others lead to a violation of their unity and, as a result, to one-sided, and sometimes incorrect theoretical and practical conclusions regarding the organization of wages. Their scientific classification is necessary, which has not yet been fully done in the economic literature.
The following can be distinguished payroll features:
1. reproductive , which consists in ensuring the possibility of reproduction of the labor force. The mechanism for implementing the reproductive function of wages is the marginalization of wages, that is, the establishment of a limit, primarily a minimum wage. The minimum wage should be fixed at the level of the subsistence minimum, or the minimum consumer budget, designed to satisfy the necessary needs of a simple labor worker and his family at the minimum acceptable level. The ability of wages to fulfill their reproductive function depends on many factors, such as the saturation of markets with goods, inflation, etc., but the main factor is its (wage) level. If an employee is satisfied with his salary, on which he can support himself and his family, then he has an incentive to work, and, consequently, the quality and productivity of labor increase.
2. distribution, the essence of which is to ensure optimal proportions in the distribution of labor and labor force by segments of the economy. The mechanism for the implementation of this function is the corresponding segmentation of the wage levels of workers by industry and sphere of the national economy, professions and specialties, as well as by regions of the country. Unreasonably high or, conversely, understated wages in certain segments of the economy can cause movements of labor that are undesirable from the point of view of the interests of society and the national economy. A typical example is the wage situation in Russian healthcare, education and culture. The level of wages in these sectors is 30-40% lower than in industry. Meanwhile, according to research, the complexity and social significance, the level of qualification and saturation of specialists in the socio-cultural sectors is higher than in industry, the training time for specialists is longer, and there is an unsatisfied demand for social services High Quality. It is also known that in the United States and Western European countries, the salaries of doctors and teachers are not inferior to, and often exceed, the salaries of technical specialists. Thus, in the USA in 1989 the average monthly wage medical workers and public education workers exceeded wages in industry by 10-15%. Approximately the same ratios in the wages of workers in the social sphere and industry are typical for Germany, France, Great Britain and others. Western countries. Sufficiently high wages have also developed in the commercial sector of Russia's social sphere.
3. Stimulating (motivational) aimed at increasing interest in the development of production, increasing production volumes, mastering new types of goods, adopting more effective regulations, laws and decrees. The mechanism for implementing the stimulating function of wages in the social sphere is its comprehensive differentiation - differentiation according to the complexity of work, responsibility of work, conditions and intensity of work, qualifications of employees, and most importantly - according to the results of labor, that is, according to the quantity and quality of services provided.
4. Social , ensuring the implementation of the principle of social justice (remuneration according to work and results).
5. Production , as the main condition for the use of labor to fill the market with goods.
6. accounting , which characterizes the measure of living labor and net income in the process of forming the cost of goods and national income.
7. Political aimed at the timely formation of the budget through the system of taxes on the income of citizens and the payroll of enterprises, which is a guarantee of the payment of benefits, pensions from public consumption funds and the state budget; on the economic and financial stabilization of the regions and the country as a whole, the acceleration of ongoing reforms to democratize society and develop market relations.
Each function, as part of a single whole - wages, not only implies the existence of other parts, but also contains their elements (for example, such functions as accounting, production, reproduction, stimulating, simultaneously play and social role; in the reproductive function, stimulating, accounting and production function etc.) At the same time, with a common unity, individual functions can be, to a certain extent, opposite to one another or exclude one another, reducing the results of their action.
The most significant contradiction of functions is that some of them lead to the differentiation of earnings, while others, on the contrary, to their equalization. The stronger the equalization, the weaker the differentiation, the weaker the incentive effect of wages.
When regulating wages, it is necessary to skillfully use the objective unity and opposition of its functions, in a timely manner to strengthen one and weaken others, so that the organization of wages corresponds to its objective content and the characteristics of the development of society.
Principles of organization of wages - these are objective, scientifically substantiated provisions that reflect the operation of economic laws and are aimed at a more complete implementation of the functions of wages.
We can distinguish the most characteristic principles of the organization of remuneration:
ü Distribution by quantity, quality, costs and results of labor.
ü Material interest of employees in achieving high final results of work.
ü A combination of material and moral incentives to work.
ü Simultaneous application of basic and bonus wages.
ü Evaluation of individual and collective results of work.
ü The combination of incentives for employees with financial responsibility.
ü Steady growth of nominal and real wages.
ü Ensuring outstripping growth rates of labor productivity in comparison with wage growth rates.
ü A fairly simple and clear procedure for remuneration.
The economic nature of wages, the functions it performs and the principles of organization are identical in all spheres and sectors of the national economy, however, the specific mechanism for the implementation of these functions in certain spheres and sectors is specific and diverse.
Forms and systems of remuneration are called upon to ensure that the quantitative and qualitative results of labor are taken into account in wages, to create a material interest among employees in improving the immediate results of their work and the overall results of the enterprise (organization).
Forms and systems of remuneration differ in the procedure for calculating wages, depending on the effectiveness of labor. The accrual system should be simple and clear, so that the relationship between labor productivity, product quality and performance of work, on the one hand, and the amount of wages, on the other, can be understood by every worker and employee.
Form of salary characterizes the relationship between the cost of working time, the productivity of workers and the amount of their earnings.
There are two forms of wages: hourly and piecework.
Time-based form of remuneration assumes that the amount of wages is determined on the basis of the hours actually worked and the established tariff rate (salary). The main advantage of time wages for an employee is a guaranteed income, which does not depend on a possible decrease in production in a given period of time. The disadvantage is the inability to increase one's earnings by increasing labor productivity for the worker, and for the enterprise - the time-based form of payment does not stimulate productivity.
Piecework payroll means that wages are accrued to the employee based on the amount of actually manufactured products or the time spent on its manufacture. For the worker, this form has the advantage that it allows you to increase wages by increasing output. At the same time, it leads to an increase in the intensity of work, which creates a greater risk of accidents and occupational diseases. At the same time, piece-work creates the risk of reducing the quality of products.
Wage system characterizes the relationship of elements of wages: the tariff part, surcharges, allowances, bonuses. Within each of the two forms of remuneration, there are different systems salary:
1. As part of the piecework form :
1.1. Direct piecework wage system consists in the fact that earnings are accrued to the employee at predetermined rates per unit of high-quality manufactured products (work performed). The main element of this system is piece rate, established on the basis of the tariff rate (salary) corresponding to the category of work, and the norm of output or norm of time for this work.
1.2. piece-bonus system assumes that the employee is charged and paid a premium for quantitative or qualitative indicators of work in excess of earnings at direct piece rates.
1.3. piece-progressive system consists in the fact that the remuneration of an employee within the established initial base (norm) is made on the basis of single rates, and in excess of the established initial base - at increased piece rates.
1.4. Indirect piecework system assumes that the level of earnings of an employee is directly dependent on the results of labor (work) of the employees he serves. This system usually used to pay support workers.
1.5. Chord piecework system - setting the amount of payment not for each production operation separately, but for the whole complex of works taken as a whole. The chord system is used in works with a long production cycle. For reducing the deadlines for completing a chord task with quality performance work, workers may be paid a bonus. Such a system is called accord-and-premium .
When using each of the piecework payment systems, the general terms and Conditions , violation of which can reduce efficiency and damage production. Among them:
ü scientifically substantiated labor rationing and correct billing of works and employees in accordance with the requirements of tariff and qualification reference books;
ü well-established accounting of the quantitative results of labor, excluding any kind of errors and additions, as well as an artificial overestimation of the amount of work performed;
ü the level of production should directly depend on the worker himself;
ü workplaces should not interfere with productive work;
ü the use of a piecework form should not lead to a deterioration in product quality, a violation of technological regimes, a deterioration in equipment maintenance, a violation of safety regulations, an overrun of material resources.
2. Within the time frame :
2.1. Simple time system . Wages are determined by multiplying the hourly rate by the hours worked. This wage system provides a certain opportunity to take into account the quality of work, the qualifications of the worker, and working conditions, but does not provide enough direct link between the final results of the work of a given worker and his wages.
2.2. Time-bonus system , at which, in addition to earnings at the tariff rate (salary), for the time actually worked, a bonus is paid for fulfillment and overfulfillment certain indicators at work.
Most common requirements that must be observed when applying time wages:
ü strict accounting and control over the time actually worked by each employee with the obligatory reflection of downtime;
ü justified (corresponding to the requirements of ETKS) assignment of wage categories (tariff rates or salaries) to time workers, and rates (official salaries) to specialists and other employees in strict accordance with the work performed by them official duties taking into account personal business qualities workers;
ü development and application of reasonable service standards, normalized tasks and headcount standards for each category of employees, which makes it possible to exclude a different degree of workload, and, consequently, a different level of labor costs during the working day;
ü optimal organization work in the workplace, effective use working time.
salary system used mainly for management personnel and engineering and technical workers with irregular working hours - it is difficult to establish the number of hours worked here, since these workers are often late at work, go on business trips and sometimes have to work on weekends. Therefore, in this case, they are assigned a certain amount as a salary by order - salary.
For managers and professionals, more and more use is contract wage system . The duration of the contract is usually 3-5 years. Its main sections are:
1) general characteristics contract;
2) working conditions;
3) wages;
4) social security;
5) the procedure for terminating the contract;
6) resolution of disputes;
7) special conditions.
The remuneration of labor of the heads of enterprises, their deputies, as well as heads of relatively independent subdivisions can be carried out as a percentage of the profits of the enterprise. However, a combined payment option for managers is more often used: salary plus allowances and bonuses depending on profit or its components that directly depend on the activities of the corresponding manager.
Tariff-free wage systems are based on the share distribution of funds intended for wages, depending on various criteria, primarily on the principles of an agreed assessment professional qualities employees and their contribution to the final result.
The principle of a tariff-free wage system is as follows: the employee is assigned a certain qualification level, but no fixed salary or tariff rate is set (hence the name of the system).
Tariff-free systems with a certain degree of approximation can be attributed to those used in various sectors of the economy (trade, rendering household services population, etc.) payment as a percentage of revenue, contractual and contract system wages, payment as a percentage of profits and other similar systems.
Since there are many psychological elements in this method of distributing earnings, good relationships within the team are necessary to eliminate resentment, misunderstanding and injustice. The leadership of this working collective needs to be good organizers and educators in order to create a certain benevolent climate.
The advantages of tariff-free wage systems include their simplicity, accessibility for understanding the mechanism for calculating wages for each employee, which increases the importance of the incentive function of wages.
Choice one form or another of remuneration is dictated by objective circumstances: technological process, the nature of the means of labor used and the forms of its organization, the degree of exactingness to the quality of the products produced or the work performed. Comprehensive consideration of these conditions can only be carried out directly at the enterprise or in the organization. In this regard, the choice of forms and systems of remuneration is the prerogative of the enterprise, the organizer of labor and production, that is, the employer.
The most effective in certain conditions is the form of payment that contributes to the growth of output, improving the quality of products (services, performing assigned work), reducing their cost and ultimately obtaining additional profit, ensuring the most complete combination of the interests of employees with the interests of the enterprise team and the employer . Depending on the organization of labor, the forms of wages can be individual and collective.
In modern conditions, the use of piecework wages is gradually declining, which is associated with the effect of the results of scientific and technological progress: the nature of production and labor becomes more complicated, the connection between the application of labor and the output becomes more and more indirect, technical regulation becomes more complicated and difficult.
The essence of wages is manifested in its main functions (Fig. 1.4), which it performs in the phases of general reproduction: production, distribution, exchange and consumption.
1. reproductive function is to ensure the reproduction of the labor force at a certain level of consumption, i.e. the amount of wages should make it possible to maintain and improve the living conditions of workers and members of their families. The costs of reproduction of the labor force depend on natural and climatic, socio-economic, cultural and other conditions. These expenses include the cost of food, clothing, housing, recreation, medical care, education, meeting social, spiritual needs, etc. In addition, the employee must be able to raise and educate children, future labor resources. Socio-economic development and scientific technical progress lead to a sharp increase in the cost of labor force reproduction (Fig. 1.5). The reproductive function of wages acts as a determining factor in relation to other functions.
Rice. 1.4.
Some researchers single out social function wages, which in its essence is a continuation and addition of reproductive wages. Wages should not only ensure the reproduction of the labor force, but also allow satisfying the entire range of secondary needs (social, cognitive, aesthetic, spiritual), enable a person to take advantage of a set of social benefits (quality medical and educational services, education of children), as well as to ensure a decent standard of living for an employee who continues to work at retirement age.
Rice. 1.5.
- 2. Distribution (production share) function involves the establishment of the employee's share in the created product. Salary is directly related to the degree of participation of the contractor in the production process and reflects the contribution of the employee to the activities of the enterprise. In other words, the distribution function reflects the share of human labor in the distribution of income between the owners of the means of production and employees. This share allows you to set the degree of high cost or low cost of labor, depending on the level of qualification, education, professional experience of the employee, his competitiveness in the labor market. distribution function implemented through various systems and forms of remuneration, additional payments and allowances, bonuses and the procedure for their calculation, the dependence of wages on the wage fund. The use of tariff-free wage systems implies a close dependence of individual wages on the personal contribution of the contractor and the achievement of organizational goals.
- 3. Resource-allocating (regulating) function ensures efficient and optimal placement and use of labor resources both at the level of economic sectors and regions of the country, and within enterprises and organizations. Differences in wage levels lead to labor mobility and the movement of labor resources to the most efficient sectors and sectors of the economy, to specific jobs, motivate employees to look for work in certain regions of the country, industries, and help meet the needs of an enterprise in personnel of a certain professional and qualification composition .
In a market economy, state regulation in the field of placement of labor resources is reduced to a minimum, and the formation and functioning of the labor market presupposes the freedom of an employee in choosing the sphere of application of labor. Other things being equal, a person will go to work where they pay more and there are opportunities for career development. In turn, it is unprofitable for the employer to pay too high wages, since in this case the profitability of the enterprise decreases. Thus, workers offer their labor in the labor market, and employers hire workers, presenting certain requirements for them. The labor market, like any market, has its own laws of labor price formation.
- 4. Stimulating function comes down to motivating the employee to effective labor activity, maximum return, improving the qualitative and quantitative indicators of labor activity. The implementation of this goal is the establishment of the amount of wages, depending on the performance of the work of the contractor. The action of the stimulating function depends on the distribution and reproduction functions and is aimed at increasing production and improving the efficiency of using all types of resources available at the enterprise. In order to receive higher wages, the employee seeks to improve his qualifications, acquire the necessary professional competencies to intensify labor activity, to achieve higher quality indicators of labor. In turn, the employer is interested in attracting more competent, highly qualified and motivated workers having the physical and intellectual labor potential necessary to perform the work. The implementation of the incentive function is carried out by management through the use of specific systems and forms of remuneration, the development of bonus systems for employees, the relationship of the size of the wage fund with the efficiency of the enterprise (organization).
- 5. status function is that the level of wages determines the social status of a person, the prestige of the profession and specialty in the labor market, as well as the status of the company. Social status refers to the position of an individual in social group, society as a whole, the system of interpersonal relations, recognition and respect for him from other people. Employment status- this is the place of the employee in the organization in relation to other employees, both vertically and horizontally. The amount of remuneration for work is one of the main indicators social status, and comparing his remuneration with the efforts expended and comparing them with the efforts and remuneration of other workers, a person concludes that wages are fair.
- 6. The function of forming the effective demand of employees consists in determining their purchasing power, which affects aggregate demand, the structure and dynamics of national production. The action of this function is manifested in the fact that the regulation of wages allows you to establish rational proportions between commodity demand and supply.
- 7. The function of providing social savings (a source of social risk insurance) suggests that the amount of wages determines the amount of deductions for pension insurance, financing both the insurance and funded parts of the pension. The level of wages also determines the amount of insurance payments for such social risks as job loss (unemployment benefits), temporary disability (payment sick leave), paid vacations (for pregnancy and childbirth, child care).
Thus, wages perform various functions, the analysis of which allows us to understand its economic and socio-psychological essence, its inherent contradictions that arise in the process of improving the organization of wages.
