principles of wage justice

The questions of absolute wages and relative wage comparison, employ all of the employees and their managers. The comments on the design of a fair incentive system must remain, at this point, necessarily cursory, given that the discussion of wage justice, would easily fill a book of its own.

The restriction “signs are as fair as possible”

already, how difficult this task is. As can be seen according to different principles of Justice is quite Different. In the figure, is illustrated as an example, the Definition of Kößler: He distinguishes three core principles (printed in bold) and five edge principles of wage justice

In Detail:

Request justice

The wage depends on the abstract requirements, which are associated with a specific location (eg. physical and mental, burden, responsibility). These are found in the context of a job evaluation procedure. Justice appears for a to pay for higher demands, higher wages, and on the other, to pay for jobs with comparable requirements.

Performance justice

The remuneration relates to individual performance, which the worker carries on his work, as measured, for example. in terms of quantities or revenues. Justice appears to reward the individual for higher performance even higher. At the same time, should be paid for the same performance, the same pay.

Market justice

The wage changes with the market demand for certain services. Justice appears to pay those higher wages, providing a (at the Moment) gefragtere work performance. This leads to fluctuating wages in the course of time, depending on the prevailing market situation. As justice sign the voluntary consent of the employee in the employment contract.

Needs-based justice

The wage depends on the personal needs of the employee. It is claimed that the wage for a full-time position of at least the existence of the worker. As justice is to give one more, needs more, for example. because he needs to feed a large family.

Social justice

With this principle, the distribution of income opportunities plays in a society has an important role. So it might be as fairly considered, and employed workers wage reasonable for waivers to the unemployed.

The success of justice

According to this principle, the amount of the remuneration depends on the economic success of the company. You can see it as a Form of performance-based justice, if one assumes that the economic success was prepared by the staff.

Distributive justice

This principle raises the question of the equitable ratio of total wages and profit. The portion of the work added value to the capital owners and the workers?

Qualification justice

Qualification of justice is not taken into account the work capacity of a worker, even if he uses it at the Moment in his place. It is, so to speak, rewarded by the potential that the company may, in principle, available. As fair is to pay people with higher qualifications also at a higher fee.

Many companies use different principles.

The basic salary is determined according to the requirements of the job, with the addition of investments are often flexible, performance-based fees and Success. Qualification of justice plays a role in the assignment of applicants to Places. In General, try to find people with a qualification, which corresponds to the requirement profile of the job and the potential of the job holder making the most of it. The Social – and the need to improve justice, regarded rather as a task of the state (eg. tax allowances for children, or transfer income).

Given the variety of sometimes contradictory principles, it seems illusionary to find a generally considered to be absolutely just accepted scale of wage differentiation. Nevertheless, companies should try to establish a relatively just system of remuneration. There is a perceived injustice on the staff has a strong demotivating and the Image of the company in the Public damaged, coincide ethical duty and economic interest, at least partially.

This post is an excerpt from the new book on corporate ethics.

How can be implemented the business ethics as a Management responsibility? A stronger orientation of the corporate guide on the guiding principle of a life-serving economy is more and more demanded. Elisabeth Gödel discusses the philosophical foundations of ethics and clarifies the relationship of ethics and Economics. The focus is on the institutionalisation of ethics is on the level of the individual company.