Wage Drift

What is Wage Drift?

 

‘Wage Drift’ is the term used to define the difference between the actual wages offered to a worker versus the wage that was initially set. There are several factors that influence wages and create wage drift.

 

The various factors that influence wages include overtime, bonuses, added responsibilities, geographical bonuses, etc. Sometimes, the wages also include a portion of the profit made by the companies which also leads to the development of a wage drift.

 

Wage drift might also occur in cases where there are a limited amount of skilled workers and hence the company would incentivize the existing workers in order to attract other skilled laborers, thus creating a wage drift.

More HR Terms

Branding

What is Branding ? ‘Branding’ is the conscious effort put in by a company to set itself apart from the competition. It helps in setting

Algorithmic Accountability

What is Algorithmic Accountability?   ‘Algorithmic Accountability’ is the concept that companies are accountable for the outputs of the algorithms which they create.   It

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’