IGCSE, A Level Business Student Forum

Q 33 Analyse the advantages of offering minimum wage rate to an employee [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[kn] redce income inequality
[an] minimum wage rate ratepolicies are more equitable distribution of income bcz it sets the standard of employee

[kn] ca be a tool to reduce poverty
[an] business could get employees who are unable to get job and by this in long run there would ba a chance that emloyee get skillled and would be able to increase irs living standard
[an+] will be an improvement in well being of low income workers

[KN] reduces income inequality
[AN] when all workers are paid the same number of wages it reduces the jealousy factor in many f the employees against one another
[AN+] leading to better teamwork as employees are motivated because the gap between rich and poor is getting filled creating a better relationship between them as it decreases discrimination of minorities
[KN] lets workers live comfortably and invest in themselves
[AN] since wage rate is low work pressure is also much lower letting employees get more leisure time which motivates them to continue working
[AN+] thus helping to improve living standards (leisure time is a SOL)

{KN} Social Responsibility
{AN} Offering a minimum wage reflects social responsibility, demonstrating a commitment to fair compensation and providing employees with a basic standard of living.
{AN+} Businesses that prioritize social responsibility often enjoy enhanced public perception and a positive reputation, which can attract customers and investors who value ethical practices.

{KN} Employee Well-being
{AN} Providing a minimum wage helps ensure that employees can meet their basic needs, reducing financial stress and improving overall well-being.
{AN+} Employees with improved well-being are likely to be more satisfied, engaged, and productive. This positive impact can contribute to a healthier and more motivated workforce.

[KN] Enhanced Employee Purchasing Power
[AN] By ensuring that employees receive a minimum wage, businesses help to boost their purchasing power.
[AN+] This can stimulate local economies as employees spend their earnings on goods and services in their communities.

[KN] Increased Productivity and Reduced Turnover
[AN] Employees who receive a fair wage are more likely to be satisfied with their jobs and engaged in their work.
[AN+] This can lead to increased productivity, reduced turnover, and lower recruitment and training costs for businesses.

[KN] Increase in employee engagement and satisfaction.
[AN] hence will increase their purchasing power leading to better SOL.
[AN+]Hence total affordability may also increase which means poverty may be reduced.


[KN] Increase in productivity.
[AN]Thus chances of getting promotion may increase along with efficiency.
[AN+]Thus leading to increase in total confidence in working promoting positive work environment.

[KN] Improving standard of living
[AN] It would make an employee able to afford basic expenses
[AN+] Improving their health and increasing productivity

[KN] Increased motivation
[AN] Employee would be sure of the payment receiving and motivate them to work harder
[AN+] Resulting in increased efficiency