Question 1

An Australian based furniture and home furnishings retailer IKEA is among the companies that have committed to pay a living wage to its employees. IKEA in 2014 announced that in Fiji, it would raise the lowest hourly wage it pays, going from $ 9.17 per hour to a global average of $ 10.76. The changes affected about half of the employees in its 38 existing stores and will also apply to hires at new locations in the Pacific. With appropriate examples, explain the difference between hourly wage, piecework rate, and salary. Further, Ryan and Peggy hold the same position in IKEA but Ryan earns more salary than Peggy. Explain two justifications of the organization\'s decision to pay Ryan more than Peggy?

Answer rating: 100% (QA)

Hourly wage piecework rate and salary are all ways of financially compensating the workers for their efforts and for the time they put in the business However the way they operate is different For exa... View the full answer