Factors Affecting Income Of Employees: A Study On Australian Organizations

Significance of Income in an Individual’s Lifestyle

Employees are the core of any organization who works towards obtaining the common goals set by the company. The primary objective of the employees is to earn for the organization or contribute significantly towards earning process of the company (Alam and Imran 2015). The productivity can be segregated into individual productivity as well as organizational productivity. In lieu of the productivity of an employee, the company provides them with salary or wages on a period of time. However, the income of an individual can vary and there are certain influencers of the same such as the nationality, gender, education, designation, company’s size as well as its profitability (Blau 2016). In this research paper, the significance of various influencers of income will be evaluated and its impact on the income of the individuals as per their gender.     

The main objective of this research is the evaluation of the various causes that affect the income of the employees and it’s how those factors influences the income. The significance of income to the employees is needed to be evaluated as it motivates the people to work as per the requirement of the organization. The objectives of this paper are detailed below:

• Significance of income to the employees and the pay as a motivating factor.
• The various factors that affect the income of the individual on a huge basis.
• The influence of the same towards the benefit of employees in an organization.

The research has a wide range of scope as the research topic has a significant effect on the employees. The factors which influence the income of the employees or workers could affect their motivation towards achieving the organization goals (Buddelmeyer, Wooden and Ghantous 2017). Hence, the paper aims to provide the particular idea on how the income is significant which alters the productivity of the employees and improves the same. This research will also shed light on the various factors which improves the income status of the employees and their motivational level.    

The demographical characteristics such as the gender influence the parity of the investment in education and its returns. It has been noticed that there remains discrimination between the earnings of a female with that of the male. The female is generally paid lower than her male counterpart irrespective of job responsibility and education level (Humphreys et al. 2017). Another reason highlighted for such discrimination is that the women are meant to take care of family if the roles are compared on the basis of responsibility of the individual in a family. Moreover, the age of an individual is another factor which influences the pay. In this case, age is considered as the measurement factor of experience. Aged people are regarded to have much more experience than their younger counterpart and hence they are paid more than the young ones.  

Gender Influence on Income

It has been observed globally that the income of the worker is the direct motivating factor as people tend to work more and stays productive if paid better salary and puts extra efforts to earn incentives (Ledford and Gast 2018). However, discrimination is observed in most of the work places which take away the employee’s confidence which makes the individual to look forward to other opportunities hence hampering the individual’s contribution towards the revenue of the company. The concept of piece rate payments actually influences the productivity of the worker. The wages or the salary that is paid to the workers encompasses the income from investment in education as well as the aid from government. It is significant for the employees or workers to maintain their standard of living. With high income source, comes a lavish lifestyle but with low incomes an individual can fulfill basic necessities of life (Lewis 2015). Hence, the companies try to keep their pay structure good so as to motivate workers and retain them. The company implements the mixture of three rewards to the workers for their hard work that includes salary, other amnesties and the non-financial rewards. This is also termed as the pay philosophy.

This has been globally observed that the income discrimination due to gender inequality is a major topic of concern (Ryan and Bhattacharyya 2016). It is generally faced by the female employees who generally receive lower payment than their male counterparts. The same has been voiced against in various corporations and people are getting aware of the same but the consciousness against this parity is developing but at a very low pace. Moreover, there are other factors which affect the productivity of a female employee such as racism, unfair promotion, unsafe workplace or sexual harassment. Moreover, the human resource department in various organizations has been trying but failed to minimize the pay gap and gender discrimination. Therefore, such a gap in the payment of women has affected their background as a whole (Silverman 2016). The human resource department of big corporates has been held responsible for such discrimination as they deem the women to be more inclined towards their personal responsibilities and hence they are kept away from promotions. Moreover, this has also been observed that the Asian women and non-Hispanic women earn more in comparison to their counterpart who are African, American Indian and other.

The nationality again is a huge influencer of income of the employee or worker. For instance, it has been seen that in Australia, an immigrant may face such issue wherein the individual is paid less than the natives. It might be due to various reasons such as difference in culture or adaption of new custom, dissimilarity in language or lack of connection, inability of finding a proper job (Zhang 2016). Alongside the same, the workers in Australia who have higher chances to lose life in line of duty are paid lower compensation than others who do not have any such risk. It has also been observed that irrespective of the qualification of the immigrant in the host country, if the level of education is not identified then it creates a dent in the individuals payment scale. Hence, it is highly recommended to the immigrant to learn the skill and get accustomed to the culture of the host country (Ryan and Bhattacharyya 2016). However, the parity of payment varies from one country to another which depends on the history of immigration of the country. For instance, the income of the native people might get affected due to the tax scale but the immigrant might face issue due to tax structure of the host country. Moreover, the rules and regulations of the country help the natives of the country as they have more understanding of the same.

Corporations’ Response to Gender Discrimination

There are various companies which are amongst the top-rated firms while some are small in comparison and not know too many people (Ryan and Bhattacharyya 2016). Hence, it not surprises to know that the employees working for big companies which higher market value and high profitability are paid well in comparison to those who work for small companies. Any company with higher profit does have a capability to pay more to their employees. There are also certain companies which highly depend on the employees as they make profit for the company and get a portion from their contribution for the company as their salary. In this case, the profitability of the company highly influences the income of the employee (Ryan and Bhattacharyya 2016). Moreover, there are also other factors that influence the income such as the requirement of certain skill set in the company which is different from what the employees have. Hence, the income of a person varies on various factors which are aforementioned.             

• What is the core reason of payment gap of the individuals?

Qualitative research approach is used in this research for the reason that it is best suitable with the exploratory research design that is selected for investigations on factors impacting income of workers in Australian organizations (Chandra, Jimenez and Radhakrishnan 2017).

Reliability and validity of the gathered secondary data is made sure through stating that all the relevant data regarding the research will be gathered from the website sources that has most currently updated information.

Simple random sampling technique is considered to be employed in this research as all the target respondents can have an equal chance to get selected from a huge population base. The sample size that is selected includes 71 employees from the profit based organizations in Australia aged between 20 to 45 years. These respondents are deemed to offer constructive viewpoints on the ways in which certain factors impact their income within their respective companies (Collie et al. 2016).

Secondary sources will be employed for data collection that will consider certain government or organization websites, published peer review journals along with books that has identified all the possible factors prevalent within the Australian organizations impacting income of their workers.

Independent variables those are selected in this research are gender, lifestyle, nationality and pay scale of employees and the dependent variable is the current income of employees in the company (Collie et al. 2016).

Quantitative research approach is employed in the research for the reason that it can help in obtaining reliable data by converting them to valuable statistics in analyzing viewpoints regarding income of selected survey respondents (Croes and Vermeulen 2016).

Nationality’s Impact on Income

Questionnaire is the suitable research instrument used in this research as this can facilitate in attaining accurate responses on all the factors impacting their income in workplace. Questionnaire design will be so that it contains both the open and close ended questions. This questionnaire design will have three segments including demographic detail questions, questions asking factors that affect their income in workplace and recommended solutions for enhancing pay scale in Australian organizations within which they work (Daneshkohan et al. 2015).

Simple random sampling technique is considered to be employed in this research as all the target respondents can have an equal chance to get selected from a huge population base. The sample size that is selected includes 71 employees from the profit based organizations in Australia aged between 20 to 45 years. These respondents are deemed to offer constructive viewpoints on the ways in which certain factors impact their income within their respective companies (Dias, Joyce and Parodi 2018).

In data analysis, correlation and regression analysis on the collected data will be carried out by means of using MS excel that is a reliable statistical tool proved to offer authentic research findings. Pearson correlation test will also be carried out in analyzing the reliability of the gathered data.

The research has numerous useful findings but is also observed to have certain limitations that are deemed to be addressed in the future research. One of the major research limitations is regarding the primary research carried out. The research did not consider using a large population sample that might have facilitated in attaining more significant findings on the research topic (Behrendt and Woodall 2015). Additionally, another limitation is regarding the survey process. This is for the reason that the employees or the target respondents those take part in the survey might be biased towards the organizations in which they work and might not provide authentic responses regarding the factors that affect their income.

Conclusion

In this research paper, the significance of various influencers of income was evaluated and its impact on the income of the individuals as per their gender. It was gathered from the paper that the research has a wide range of scope as the research topic have a significant effect on the employees. The factors which influence the income of the employees or workers could affect their motivation towards achieving the organization goals. Hence, the paper aims to provide the particular idea on how the income is significant which alters the productivity of the employees and improves the same.

References

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Behrendt, C. and Woodall, J., 2015. Pensions and other social security income transfers. Labour markets, institutions and inequality (Cheltenham, UK, Edward Elgar Publishing), pp.242-262.

Blau, F.D., 2016. Gender, inequality, and wages. OUP Catalogue.

Buddelmeyer, H., Wooden, M. and Ghantous, S., 2017. Transitions from casual employment in Australia. Melbourne Institute of Applied Economic and Social Research, University of Melbourne.

Chandra, S., Jimenez, J. and Radhakrishnan, R., 2017. Accessibility evaluations for nighttime walking and bicycling for low-income shift workers. Journal of Transport Geography, 64, pp.97-108.

Collie, A., Lane, T.J., Hassani-Mahmooei, B., Thompson, J. and McLeod, C., 2016. Does time off work after injury vary by jurisdiction? A comparative study of eight Australian workers’ compensation systems. BMJ open, 6(5), p.e010910.

Collie, A., Thompson, J. and McLeod, C., 2016. Does time off work after injury vary by jurisdiction? A comparative study of eight Australian workers’ compensation systems. BMJ open, 6(5), p.e010910.

Croes, P.R. and Vermeulen, W.J., 2016. In search of income reference points for SLCA using a country level sustainability benchmark (part 1): fair inequality. A contribution to the Oiconomy project. The International Journal of Life Cycle Assessment, 21(3), pp.349-362.

Daneshkohan, A., Zarei, E., Mansouri, T., Maajani, K., Ghasemi, M.S. and Rezaeian, M., 2015. Factors affecting job motivation among health workers: a study from Iran. Global journal of health science, 7(3), p.153.

Dias, M.C., Joyce, R. and Parodi, F., 2018. The gender pay gap in the UK: children and experience in work.

Humphreys, J., Wakerman, J., Pashen, D. and Buykx, P., 2017. Retention strategies and incentives for health workers in rural and remote areas: what works?.

Ledford, J.R. and Gast, D.L., 2018. Single case research methodology: Applications in special education and behavioral sciences. Routledge.

Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), pp.473-475.

Ryan, S. and Bhattacharyya, A., 2016. Barriers to professional development among contingent academic employees: An Australian case study.

Silverman, D. ed., 2016. Qualitative research. Sage.

Zhang, Y., 2016. A review of employee turnover influence factor and countermeasure. Journal of Human Resource and Sustainability Studies, 4(02), p.85.

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