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.

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