Human Resource Management – Security Of Income
Security of income
Highly variable income levels with a low base salary threshold or the threat of job loss or layoff can have a severe impact on employee’s feelings of security and their ability to work effectively. It is hard to be committed to an employer whose levels of commitment in return are in doubt or unclear. Lack of security of income is a very real and prominent source of demotivation for employees who may feel trapped and who then try to cope by taking a second job or get involved in part time working. Introduction of the minimum wage made some contribution to this issue, but there are still problems to address of low pay in high-cost areas and poorly designed incentive schemes that can leave people below a ‘decency threshold’, creating a sense of dissatisfaction among them.
Security of income is a type of reward which is given to employees by the employer. The threat of loss of a job has a great impact on the productivity of the employee. Employee wants to make sure that the job which is he doing is secure and provide him with the basic salary which is required by him in order to fulfill his fundamental needs. Employees are not able to do the work with dedication and commitment towards the tasks assigned when their jobs are not secured. This results in demotivating them and decreases their morale badly. Minimum wage laws help the employees in overcoming such issues of job security to some extents. Security of income along with effective and efficient reward management systems in place help the employees in providing effective results. When the jobs of the employees are not secured then they often tend to do less work as they are concerned and have a fear of losing their jobs at any time. The employees not feel accountable to the employer and are not at all committed to the work assigned to them and to the organization as a whole. The employees must be motivated by the employer by providing them with the security of their jobs and income. This security enables the employees to work effectively and efficiently which increases their productivity as well as foster the growth of the organization. The security of income is important as well as crucial from the point of view of both the employer and the employees.