What is Mean Wage ?
‘Mean Wage’ refers to the average wage given to a group of employees for the same amount of work performed for the same duration of time. It is derived by adding together the wages of individual employees in the group and then dividing it by the sum of the number of employees in that group.
The mean wage is calculated to determine the salary to be offered for a newly hired candidate or for calculating the salaries of the employees in a newly launched process in the company.
While the theoretical method for calculation of the mean wage is fairly easy, it is a much more difficult task practically. The issue arises due to the minor difference that exists in the job designations as well as the extremities which exist in the salary structure of the data set used to calculate the mean wage.