Student’s Name
Professor’s Name
Course Title
Date of Submission
Effects of Major Corporations Paying Low Wages
Employment is the backbone of income earned by a majority of households in societies across the globe. Salary structures differ from one company to the next, since company executives dictate the level of pay earned by staff members. Minimum wage is set by the government and it is the discretion of the employer to decide on the pay and benefits awarded to staff members. Paying low wages has both a positive and negative effect that is explored in this paper in order to have a clear perspective on the full impact major corporation’s play on salaries.
Wage refers to the sum of money an employee earns per unit of labor. A worker's salary in a company is determined by business policies, level of experience, the occupation and the country where the establishment is located. Maximizing revenue is top of the agenda of a majority of companies, and paying employee’s minimum wage aids in achieving the goals of the organization. The minimum wage in some countries attracts or repels corporations due to the cost of doing business. The result of some countries having lower cost in wages attracts a great number of industries to base their operations overseas …show more content…
Large corporations are leading in the United States by 66 percent in the number of low wage workers, indicating the option preferred by a majority of big businesses. Major companies opt to pay low wages or the bare minimum in order to have a positive impact on their books of account. A company that pays low salaries has fewer expenses in paying staff remunerations and has less tax to pay to the government. However, even with the savings companies make through paying low wages, there is a negative impact of losing their best workers to other well-paying corporations (Greenhouse