1. Functions of wages, problems of their implementation in modern conditions. Basic principles of the organization of wages.
Wage- this is the main part of the funds allocated for consumption, representing a share of income (net output), depending on the final results of the work of the team and distributed among employees in accordance with the quantity and quality of labor expended, the real labor contribution of each and the amount of invested capital.
It is also necessary to distinguish between nominal and real wages. Nominal wage or income expresses the total amount of money received by an employee for his labor expended, work performed, service rendered or hours worked. It is determined by the current wage rate or price work force per unit of work time.
Real wages are the amount of goods and services that can be purchased with a nominal wage.
The essence of wages lies in the fact that it represents the share of workers, expressed in money, in that part of the national income that is directed towards personal consumption and distribution according to the quantity and quality of the labor expended by each worker in social production.
Wages play a huge role in the development of the state's economy and the improvement of the well-being of the people. It expresses a broad aspect economic relations between society, the labor collective and employees regarding their participation in social labor and its payment.
On the one hand, wages are the main source of improving the well-being of workers and employees, and on the other hand, they are an important lever of material incentives for growth and improvement. social production. In order for production to continuously develop and improve, it is necessary to create a material interest of workers in the results of labor.
There are a number of reasons that affect the size of wages, first of all, the equalization of the difference in its size. They are connected mainly with the attractiveness and unattractiveness of professions. Heavy, monotonous, dirty and dangerous job naturally, they should be paid much higher (miners, nuclear scientists, dock workers, garbage collectors, etc.), otherwise it will not be possible to select people for these specialties. Similarly, night work should be paid, overtime work, weekend work and holidays. It is this payment that is intended to compensate for the unattractive features of the above professions and working conditions. Such differences caused by non-material reasons are called equalizing differences, since they are not directly related to labor costs and labor productivity.
Professions and types of work that attract a large number of applicants and are considered prestigious should be paid less salary, however, wage rates or honoraria in prestigious professions (lawyers, doctors, teachers, etc.) must take into account the large costs that these people incurred while learning their professions.
In modern conditions, during the period of transition to a market economy, in order to stimulate the work of workers, remuneration is not the only source of income for an employee. The total income of an employee includes the following types of payments: wages at tariff rates and salaries, additional benefits and compensations, incentive allowances and bonuses, social payments, dividends, etc. The ratio between these elements forms the income structure, or wages, of individual employees and the entire organization .
The structure of wages in a particular organization is determined on the basis of a microeconomic analysis of the level of remuneration of employees, existing additional payments, costs and results of personnel labor, labor productivity and profitability, as well as conditions in the regional labor market, in particular, the balance of supply and demand for labor etc.
The structure of income at the enterprises of our country is determined by the ratio of three main components: tariff rates and salaries, additional payments and compensations, allowances and bonuses. Tariff rates and salaries determine the amount of remuneration in accordance with its complexity and responsibility under normal working conditions and the corresponding labor costs.
Surcharges and compensations are established as compensation for additional labor costs in case of existing deviations in working conditions. Allowances and bonuses are provided to stimulate high creative activity of personnel, improve the quality of work, labor productivity and production efficiency, and for high quality products are set depending on the total profit received or the total income of the enterprise in the amount of 20-40% of the tariff rate.
Bonuses are provided for high-quality and timely performance of production tasks, as well as for the personal creative contribution of employees to the final results of production.
Social payments include partial or full payment of staff expenses for the following types: transport, health care, holidays and weekends, meals during work, employee training, life insurance, country trips, material assistance, etc.
Development and use various forms and remuneration systems make it possible to apply a certain procedure for calculating earnings to each group and category of workers. This provides a more accurate account of the quantity and quality of labor invested by workers in the final results of production.
Salary performs several functions.
reproductive function consists in ensuring the possibility of the reproduction of labor power at a socially normal level of consumption, that is, in determining such an absolute amount of wages that allows the conditions for the normal reproduction of labor power to be realized, in other words, maintaining, and even improving the living conditions of an employee who should be able to live normally (pay for an apartment, food, clothes, i.e. basic necessities), which should have a real opportunity to rest from work in order to restore the strength necessary for work. Also, the employee must be able to raise and educate children, future labor resources. Hence the original meaning of this function, its defining role in relation to others. In the case when the salary at the main place of work does not provide the employee and his family members with normal reproduction, a problem arises. additional earnings. Working on two or three fronts is fraught with depletion of labor potential, a decrease in professionalism, a deterioration in labor and production discipline, and so on.
social function, sometimes stands out from the reproduction, although it is a continuation and addition to the first. Wages as one of the main sources of income should not only contribute to the reproduction of the labor force as such, but also enable a person to take advantage of a set of social benefits - medical services, quality rest, getting an education, raising children in the system of preschool education, etc. And besides, to ensure a comfortable existence of a person working at retirement age.
Stimulating function important from the position of the management of the enterprise: it is necessary to encourage the employee to labor activity, to maximize the return, increase labor efficiency. This goal is served by establishing the amount of earnings depending on the results of labor achieved by each. The separation of wages from the personal labor efforts of workers undermines labor base wages, leads to a weakening of the stimulating function of wages, to its transformation into a consumer function and extinguishes the initiative and labor efforts of a person.
The employee should be interested in improving his qualifications in order to receive more earnings, because. higher qualifications pay more. Enterprises are interested in more highly qualified personnel to increase labor productivity and improve product quality. The implementation of the stimulating function is carried out by the management of the enterprise through specific remuneration systems based on the assessment of labor results and the relationship between the size of the wage fund (PAY) and the efficiency of the enterprise.
The main direction of improving the entire system of organizing wages is to ensure a direct and rigid dependence of wages on the final results economic activity labor collectives. In solving this problem, an important role is played by right choice and rational application of forms and systems of wages, which will be discussed below.
status function wages implies the correspondence of the status determined by the amount of wages, the labor status of the employee. Status refers to the position of a person in a particular system of social relations and connections. Employment status is the place of a given employee in relation to other employees both vertically and horizontally. Hence, the amount of remuneration for work is one of the main indicators of this status, and its comparison with one's own labor efforts makes it possible to judge the fairness of remuneration. This requires a public development of a system of criteria for remuneration of certain groups, categories of personnel, taking into account the specifics of the enterprise, which should be reflected in the collective agreement (contracts). The status function is important, first of all, for the workers themselves, at the level of their claims to the salary that workers of the corresponding professions have at other enterprises, and the orientation of the staff to a higher level of material well-being. To implement this function, you also need material basis, which is embodied in the corresponding efficiency of labor and the activities of the company as a whole
Payroll features
Wages perform several functions, the most important of which are reproductive, stimulating, status, regulating (distributive) and production-sharing.
reproductive function is to ensure the possibility of reproduction of the labor force at a socially normal level of consumption, i.e. in determining such an absolute amount of wages that allows the conditions for the normal reproduction of labor power to be realized. Hence the original meaning of this function, its defining role in relation to others. This is especially true at the present time, when almost all issues of wages are reduced mainly to the possibility of ensuring a decent standard of living. In the case when the salary at the main place of work does not provide the employee and his family members with normal reproduction, the problem of additional earnings arises. Their implementation outside the enterprise (firm) can cause not only positive, but also negative consequences. Working on two or three fronts is fraught with depletion of labor potential, a decrease in professionalism, a deterioration in labor and production discipline, and so on.
status function wages implies the correspondence of the status determined by the amount of wages, the labor status of the employee. By "status" is meant the position of a person in a particular system of social relations and connections. Employment status is the place of a given employee in relation to other employees, both vertically and horizontally. Hence, the amount of remuneration for work is one of the main indicators of this status, and its comparison with one's own labor efforts makes it possible to judge the fairness of remuneration. This requires a public development (with mandatory discussion with the staff) of a system of criteria for remuneration of certain groups, categories of personnel, taking into account the specifics of the enterprise, which should be reflected in the collective agreement (contracts). The main problem is to find the most appropriate combination of teamwork in work, necessary for the success of the company, and individualism in wages.
The status function is important, first of all, for the employees themselves, at the level of their claims to the salary that employees of the corresponding professions have in other firms, and the orientation of personnel to a higher level of material well-being. To implement this function, a material basis is also needed, which is embodied in the corresponding efficiency of labor and the activities of the company as a whole.
Stimulating function wages is important from the standpoint of the company's management: it is necessary to encourage the employee to labor activity, to maximize returns, to increase labor efficiency. This goal is served by setting the size of earnings depending on the results of labor achieved by each. The separation of wages from the personal labor efforts of workers undermines labor base salary, leads to a weakening of the stimulating function of wages, to its transformation into a consumer function and extinguishes the initiative and labor efforts of a person.
The implementation of the incentive function is carried out by the management of the company through specific remuneration systems based on the assessment of labor results and the relationship between the size of the wage fund and the efficiency of the company.
Regulating function wages affects the ratio between the demand and supply of labor, the formation of personnel (number of employees and professional qualifications) and the degree of employment. This function plays the role of balancing the interests of employees and employers. The objective basis for the implementation of this function is the principle of differentiation of wages by groups of employees, according to the priority of activities or other grounds (signs), i.e. development of a specific policy for setting the level of remuneration various groups(categories) of workers in specific production conditions. It is subject to regulation labor relations between social partners on mutually acceptable terms and is reflected in the collective agreement.
This principle can be successfully used only if the pricing mechanism in the labor market and the behavior of subjects associated with it are taken into account. market relations. The specificity of the commodity "labor power" requires a distinction between the concepts of "labor price" and "labor price".
The price of labor- this is the monetary expression of its value, reflecting, according to segmentation criteria, the level of costs required for the reproduction of the labor force, taking into account supply and demand in the labor market. The price of labor can be the basis for the formation of a policy of cost differentiation at the enterprise, as well as when establishing contractual conditions for remuneration of a particular employee hired by the employer.
The price of labor- this is the monetary expression of the various qualities of labor, it allows you to measure the amount of labor with its payment. The unit of measurement can be the price of an hour of labor, which is a derivative of the price of labor power, determining the conditions for remuneration of an employee based on the results of his current activities under the conditions of the mechanism of the internal labor market at the enterprise. Prices different kinds labor take the form of calculated wage rates ( official salaries). By setting the price of a particular type of labor, the enterprise regulates wages so that, on the one hand, it does not underestimate its level (otherwise, qualified personnel will leave), and on the other hand, not overprice so that the company's products are competitive not only in terms of consumer qualities , but also at the price of goods (products, services). Otherwise, the volume of sales (sales, revenue) may decrease, which will affect the demand for the labor force, its employment, etc.
Production share the function of wages determines the degree of participation of living labor (through wages) in the formation of the price of goods (products, services), its share in total production costs and labor costs. This share allows you to establish the degree of cheapness (high cost) of labor, its competitiveness in the labor market, because only living labor sets in motion embodied labor (no matter how great it is), which means that it requires obligatory observance of the lower limits of the cost of labor and certain limits salary increase. This function embodies the implementation of the previous functions through a system of tariff rates (salaries) and grids, additional payments and allowances, bonuses, etc., the procedure for their calculation and dependence on the wage fund.
The production-sharing function is important not only for employers, but also for employees. Some tariff-free wage systems and other systems imply a close dependence of individual wages on the wage fund and the employee's personal contribution. 3
Implementation of wages
The remuneration of workers is carried out, as a rule, using the tariff system. The tariff system is a set of general initial rules for calculating wages determined by law, which are based on taking into account the qualifications of workers, the degree of complexity of the production process, conditions, intensity, quality of labor and its results. The concept of "tariff system" refers to the remuneration of both workers and managers, specialists, and employees. However, in practice it is most often mentioned in relation to the remuneration of workers.
The tariff system is implemented with the help of tariff rates, tariff scales, tariff-qualification guides, regional coefficients, surcharges and allowances.
Tariff rates (hourly, daily, monthly) are expressed in monetary form wages of workers in various types of work (for the corresponding unit of time - hour, day, month.) Tariff rates increase as the category increases, the category is an indicator of the complexity of the work performed and the skill level of the worker. The ratio of tariff rates of different categories can be determined using tariff scale.
The tariff scale is a scale of coefficients, consisting of certain number tariff categories and coefficients. The coefficient, which stands in the tariff scale against each category, starting from the second, shows how much the tariff rate of this category is more than the tariff rate of the previous or first category. The range of the tariff scale is the ratio of the tariff rates of the extreme categories.
Previously, all tariff rates were approved centrally. They, as a rule, had an industry affiliation. Within the industry, the advantage in terms of tariff rates was provided not only to highly skilled workers, but also to those of them who were engaged in the manufacture, assembly, and production of complex and technically new products. In this regard, in some industrial sectors of the national economy (for example, in engineering) there were several levels of tariff rates. 4
At present, setting the size of tariff rates, their ratio between certain categories of personnel has become the prerogative of the enterprise.
Billing of work is the assignment of different in complexity, accuracy and responsibility of work actually performed at the enterprise to certain categories of the tariff scale. It is produced by the administration of the organization in agreement with the trade union committee in accordance with the qualification characteristics. The charged work is compared with the works described in the specified characteristics, and with typical examples of works placed in the directory or in additional lists of examples of works approved in the prescribed manner.
The issue of assigning (raising) qualification ranks to workers is considered by a special commission of an enterprise, workshop on the basis of an application from a worker who has undergone appropriate training and passed a qualification exam, on the proposal of the head of the unit (foreman, shift supervisor, etc.) taking into account the opinion of the team of the brigade. The right to increase the rank are, first of all, workers who perform high-quality work and established labor standards of a higher rank for at least three months and conscientiously treat their labor duties.
The conclusion of the qualification commission is the basis for the approval of a new category for the worker by the administration of the enterprise or workshop in agreement with the relevant trade union committee and documenting this order (instruction). Corresponding entries are made in the labor and pay book of the worker. Workers are issued a certificate for the assigned category in combined professions.
The qualification category determines the level of qualification of the worker and the degree of complexity of the work available at the enterprise.
The rank of an employee is one of the conditions employment contract. In this regard, the administration cannot change it unilaterally on the grounds that for a certain period of time a job corresponding to the qualifications of the employee has disappeared. If the worker cannot cope with the performance of operations according to the category assigned to him, the administration must take measures to eliminate the reasons that make it difficult to perform tasks properly. If positive results are not achieved at the same time, the worker can be offered another less qualified job with the assignment of the appropriate category. If the employee does not accept such an offer, the administration has the right to raise the issue of terminating the employment contract due to inconsistency with the position held or work due to insufficient qualifications that prevent the continuation of work.
The work of workers may be paid not only on the basis of tariff rates, but also using salaries, as well as a tariff-free system, if the organization considers such a system appropriate.
For guidance in setting salaries for workers in the manufacturing sector, you can use the qualification directory, and the practice of setting salaries for highly skilled workers. But whose work, taking into account specific production conditions, it is advisable to pay according to salaries, the enterprise must decide independently.
Tariff rates, even if they are determined directly at the enterprise, cannot take into account the intensity of work of each individual employee, his production experience, professional skills, attitude towards work and other factors that distinguish him from other employees. This role was taken over by allowances and additional payments to tariff rates and salaries. 5
The main purpose of bonuses (for professional skills, long continuous service, high qualifications, performance of particularly important work, for knowledge foreign language etc.) - encourage employees to improve their business skills and increase the level of skill; to reduce the turnover of personnel in a number of localities, as well as in one or another sphere of production activity, which has acquired important national economic significance. The payment of allowances, as a rule, is not associated with the imposition of any additional labor functions in excess of those that were determined at the conclusion of the employment contract.
Payroll features
Wages perform several functions, the most important of which are reproductive, stimulating, status, regulating (distributive), production-sharing, etc.
Reproductive function of wages -- the ability of wages to be sufficient to compensate for the physical, mental, and other costs that occur in the process labor activity man and preparation for it. That is, the degree (completeness) of the implementation of the reproductive function of wages is determined by its size, and also depends on the level of prices for goods and services, inflation, the timeliness of payment of remuneration and some other aspects.
The degree of implementation of the reproductive function of wages can be assessed, measured and analyzed by comparing two values - the subsistence minimum and the wages received by a particular worker. If wages are not less than the officially established subsistence level, then it fulfills its reproductive function.
In order to ensure not only simple, but also expanded reproduction of the labor force, it is not enough that the wages of the worker be equal to the subsistence minimum. Wages must exceed the subsistence level, so for its expanded reproduction, a person needs funds for physical, cultural, intellectual development, as well as the maintenance of disabled, young family members, etc.
status function wages implies the correspondence of the status determined by the amount of wages, the labor status of the employee. By "status" is meant the position of a person in a particular system of social relations and connections. Employment status is the place of a given employee in relation to other employees, both vertically and horizontally. Hence, the amount of remuneration for work is one of the main indicators of this status, and its comparison with one's own labor efforts makes it possible to judge the fairness of remuneration.
The status function is important, first of all, for the employees themselves, at the level of their claims to the salary that employees of the corresponding professions have in other firms and the orientation of personnel to a higher level of material well-being.
Incentive function of wages- its property (ability) to direct the interests of workers to achieve the required results of labor (more of it, more High Quality etc.), primarily by ensuring the relationship between remuneration and labor contribution. That is, the degree of implementation of the stimulating function of wages is determined, first of all, by its organization, and not by the amount of wages. For example, the main reason for full implementation of potential abilities and opportunities, half of all workers in the real sector of the Russian economy is precisely the lack of interconnection and dependence of the size of their wages on the actual results of labor, qualifications and professionalism.
The stimulating function of wages is to provide a certain, necessary for the employer, labor return from the employee, to create a certain stereotype of the employee's behavior in the production process, to realize his physical and spiritual abilities in the process of labor activity. Wages, in the process of implementing their stimulating function, force the employee to a certain labor efficiency necessary for the employer, sufficient to not only cover his labor costs, but also bring a certain profit, from which taxes will be paid for national and local needs and ensure the expansion of production.
Regulating function wages affects the ratio between the demand and supply of labor, the formation of personnel (number of employees and professional qualifications) and the degree of employment. This function plays the role of balancing the interests of employees and employers. The objective basis for the implementation of this function is the principle of differentiation of wages by groups of employees, according to the priority of activities or other grounds (signs), i.e. development of a specific policy for establishing the level of remuneration for various groups (categories) of workers in specific production conditions. This is the subject of regulation of labor relations between social partners on mutually acceptable terms and is reflected in the collective agreement.
Production share the function of wages determines the degree of participation of living labor (through wages) in the formation of the price of goods (products, services), its share in total production costs and labor costs. This share allows you to establish the degree of cheapness (high cost) of labor, its competitiveness in the labor market, because only living labor sets in motion embodied labor (no matter how great it is), which means that it requires obligatory observance of the lower limits of the cost of labor and certain limits salary increase. This function embodies the implementation of the previous functions through a system of tariff rates (salaries) and grids, additional payments and allowances, bonuses, etc., the procedure for their calculation and dependence on the wage fund.
The production-sharing function is important not only for employers, but also for employees.
Wages perform a variety of socio-economic functions. A function is a form of manifestation of any system (technological, biological, social). Economic categories represent a complex structure of industrial relations, so they perform various functions. Among scientists there is no consensus on the number of functions inherent in wages. Most scientists single out in their works only two main functions of wages: reproductive and stimulating.
1. Reproductive function- consists in the fact that wages must guarantee the reproduction of labor power. This function is one of the most basic and is associated with the achievement main goal- human labor activity - providing means of subsistence. This means that wages should ensure the satisfaction of at least the minimum needs of a person. In this regard, the minimum level of wages is determined by law. This is stated in article 133 of the Labor Code.
The minimum wage is set simultaneously throughout the territory Russian Federation Federal law and cannot be lower than the subsistence level of an able-bodied person. The monthly salary of an employee who has worked the norm of working hours for this period and fulfilled the norms of labor (labor duties) cannot be lower than the established federal law minimum size wages.
When remuneration is based on the tariff system, the size of the tariff rate (salary) of the first category of the unified tariff scale cannot be lower than the minimum wage.
2. Stimulating function- is currently becoming the most significant, since it is designed to ensure that the level of payment for the volume and quality of labor invested, aiming employees at achieving the final results of their work. It manifests itself in the direction of the interests of employees to achieve the required results of labor (by ensuring the relationship between the amount of remuneration and labor contribution), to achieve the goals that the employer sets for himself in the course of his economic activity.
Many specialists also distinguish the regulatory, compensatory, and evaluation functions of wages.
3. Regulatory lies in the fact that in the conditions of the functioning of a market economy, wages are a regulator of the demand for labor in the labor market and through its level it is possible to regulate the demand for products and services of the end consumer.
4. Compensating function wages - is expressed in compensation for damage to health caused by harmful, severe and hazardous conditions labor. Ensuring this function is expressed in the establishment of wage increases (for example, for medical workers involved in the treatment of mental patients, patients with tuberculosis, venereal diseases, AIDS, etc.).
5. Evaluation function- allows you to evaluate the size of the labor contribution of each individual employee, using certain criteria, which in turn allows you to reasonably distribute the wage fund and the material incentive fund among the employees of the institution.
In market conditions of management, wages acquire the following features:
Firstly, wages are remuneration. But not all remuneration for work is wages. Indeed, for Good work the employer can apply various incentives (incentives) to the employee, which are also a kind of remuneration.
The second sign wages are provided for payment for work. The employment contract provides that the employee undertakes to perform work in a specific specialty and qualification. Therefore, here we mean not the end result, as in a work contract, but the labor itself - the type of activity that the employee must perform.
Third, salary - payment in terms of quantity and quality of labor. The employee must conscientiously fulfill his labor duties in accordance with the requirements of the quality of work. This sign reflects the economic principle of proportionality between the labor expended and its payment.
Fourth, wages are paid by advance established standards and rates. The basis is either piece rates and production rates, or hours worked, or other indicators established by the organization.
So, wages are the price of labor, expressed in cash, which must be paid to the employee in accordance with the terms of the employment contract, based on the quantity and quality of labor expended by him, according to pre-established local regulations organization standards and rates.
Wages perform several functions, the most important of them are reproductive, > stimulating, > status, > regulating (distributive), > production-sharing, and others (Fig. 1).
Rice. 1 "Payroll functions"
reproductive function consists in ensuring the possibility of the reproduction of labor power at a socially normal level of consumption, that is, in determining such an absolute amount of wages that allows the conditions for the normal reproduction of labor power to be realized. Hence the original meaning of this function, its defining role in relation to others. This is especially true at the present time, when almost all issues of wages are reduced mainly to the possibility of ensuring a decent standard of living. In the case when the salary at the main place of work does not provide the employee and his family members with normal reproduction, the problem of additional earnings arises. Their implementation outside the enterprise (firm) can cause not only positive, but also Negative consequences. Working on two or three fronts is fraught with depletion of labor potential, a decrease in professionalism, a deterioration in labor and production discipline, and so on.
status function wages implies the correspondence of the status determined by the amount of wages, the labor status of the employee. By "status" is meant the position of a person in a particular system of social relations and connections. Employment status is the place of a given employee in relation to other employees, both vertically and horizontally. Hence, the amount of remuneration for work is one of the main indicators of this status, and its comparison with one's own labor efforts makes it possible to judge the fairness of remuneration. This requires a public development (with mandatory discussion with the staff) of a system of criteria for remuneration of certain groups, categories of personnel, taking into account the specifics of the enterprise, which should be reflected in the collective agreement (contracts).
The status function is important, first of all, for the employees themselves, at the level of their claims to the salary that employees of the corresponding professions have in other firms and the orientation of personnel to a higher level of material well-being. To implement this function, a material basis is also needed, which is embodied in the corresponding efficiency of labor and the activities of the company as a whole.
Stimulating function wages are important from the standpoint of the company's management: it is necessary to encourage the employee to labor activity, to maximize returns, and increase labor efficiency. This goal is served by setting the size of earnings depending on the results of labor achieved by each. The separation of wages from the personal labor efforts of workers undermines labor base salary, leads to a weakening of the stimulating function of wages, to its transformation into a consumer function and extinguishes the initiative and labor efforts of a person.
The implementation of the incentive function is carried out by the management of the company through specific remuneration systems based on the assessment of labor results and the relationship between the size of the wage fund and the efficiency of the company.
Regulating function wages affects the ratio between the demand and supply of labor, the formation of personnel (number of employees and professional qualifications) and the degree of employment. This function plays the role of balancing the interests of employees and employers. The objective basis for the implementation of this function is the principle of differentiation of wages by groups of workers, according to the priority of activities or other grounds (signs), that is, the development of a specific policy for establishing the level of wages for various groups (categories) of workers in specific production conditions. This is the subject of regulation of labor relations between social partners on mutually acceptable terms and is reflected in the collective agreement.
This principle can be successfully used only if the mechanism of pricing in the labor market and the behavior of subjects of market relations associated with it are taken into account. The specificity of the commodity "labor power" requires a distinction between the concepts of "labor price" and "labor price".
The price of labor- this is the monetary expression of its value, reflecting, according to segmentation criteria, the level of costs required for the reproduction of the labor force, taking into account supply and demand in the labor market. The price of labor can be the basis for the formation of a policy of cost differentiation at the enterprise, as well as when establishing contractual conditions for remuneration of a particular employee hired by the employer.
The price of labor- this is the monetary expression of the various qualities of labor, it allows you to measure the amount of labor with its payment. The unit of measurement can be the price of an hour of labor, which is a derivative of the price of labor power, determining the conditions for remuneration of an employee based on the results of his current activities under the conditions of the mechanism of the internal labor market at the enterprise. Prices for various types of labor take the form of calculated tariff rates (official salaries). By setting the price of a particular type of labor, the enterprise regulates wages so that, on the one hand, it does not underestimate its level (otherwise, qualified personnel will leave), and on the other hand, not overprice so that the company's products are competitive not only in terms of consumer qualities , but also at the price of goods (products, services). Otherwise, the volume of sales (sales, revenue) may decrease, which will affect the demand for the labor force, its employment, etc.
Production share the function of wages determines the degree of participation of living labor in the formation of the price of goods (products, services), its share in total production costs and labor costs. This share allows you to establish the degree of cheapness (high cost) of labor, its competitiveness in the labor market, because only living labor sets in motion embodied labor (no matter how great it is), which means that it requires obligatory observance of the lower limits of the cost of labor and certain limits salary increase. This function embodies the implementation of the previous functions through a system of tariff rates (salaries) and grids, additional payments and allowances, bonuses, etc.
The production-sharing function is important not only for employers, but also for employees. Some tariff-free wage systems and other systems imply a close relationship between individual wages and the employee's personal contribution. Within the enterprise, individual units can be built on a similar relationship (through the coefficient of labor contribution or in another way).
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