Analysis of Factors Affecting Wages

Oct 13, 2025 by thesweetdesigns.com 73 views

Analysis of Employee Welfare Levels in Several Industrial Companies in the City of Medan

Introduction

Medan City, as one of the industrial centers in Indonesia, has undergone a significant transformation thanks to the industrialization process. This transformation is expected to increase people's income and ultimately improve their quality of life. In this context, special attention needs to be given to individuals involved in the industrial sector, namely workers. Human resources or labor are the most sensitive elements in supporting industrial sustainability, and their basic daily needs are very dependent on the wages they receive.

The Importance of Wages in Industrial Relations

The manufacturing industry contributes greatly to the Gross Regional Domestic Product (GRDP) of Medan and acts as a strong sector in creating employment and improving the welfare of the community, especially for industrial workers. Wage problems have always been a hot topic in industrial relations, often triggers protests and demonstrations. Workers demand their rights for better wages, while many entrepreneurs feel burdened by wage costs, which according to them can reduce the profitability of the company. However, there are also conditions where workers do not consider their abilities and productivity when asking for an increase in wages. The question is, what is the real function of wages? Wages not only function in return for the work carried out, but also plays an important role in increasing employee motivation, productivity, and morale. Wages are the largest part of the personal income of workers, which are directly related to meeting daily needs and, in general, their welfare.

The Purpose of the Analysis

The purpose of this analysis is to examine the wages and welfare of workers in several industries in Medan. The three industrial sectors analyzed are manufacturing industries that employ a minimum of one hundred workers, which are categorized as large industries according to the Central Statistics Agency. The results of the analysis show that the wage level is significantly influenced by three factors, namely working hours, experience, and education. Of the three factors, the working hours factor has the greatest influence, followed by education and experience.

Analysis of Factors Affecting Wages

Working Hours

Working hours are the most dominant factor in determining wages received by workers. The more hours they work, usually the higher the wages they receive. This shows that companies are more likely to provide better compensation to employees who want to work longer. For example, a worker who works 40 hours a week will likely receive higher wages compared to a worker who works 30 hours a week. This is because the company recognizes the value of the worker's time and is willing to compensate them accordingly.

Education

The level of education also has a significant effect on the level of wages. Workers who have higher education will usually get better wages compared to those who have a lower level of education. This shows the importance of education in improving the quality of human resources in the industry. For instance, a worker with a bachelor's degree in engineering will likely receive higher wages compared to a worker with a high school diploma. This is because the company recognizes the value of the worker's education and is willing to compensate them accordingly.

Experience

Work experience, despite having a smaller influence compared to working hours and education, remains an important factor in determining wages. Workers who have more experience tend to be more productive and can make a greater contribution to the company. For example, a worker with 10 years of experience in a particular field will likely receive higher wages compared to a worker with 5 years of experience. This is because the company recognizes the value of the worker's experience and is willing to compensate them accordingly.

Conclusion

In the industrial context in the city of Medan, analysis of employee wages and welfare shows that working hours, education, and experience have a positive influence on the level of wages received by workers. The employer is expected to pay attention to these factors in order to create a good balance between company profitability and employee welfare. Thus, it is hoped that harmonious industrial relations will be created, which in turn can increase productivity and economic growth in the area.

Recommendations

Based on the analysis, the following recommendations are made:

Companies should pay attention to the working hours, education, and experience of their employees when determining wages.
Employees should consider their abilities and productivity when asking for an increase in wages.
The government should provide support to companies in creating a good balance between company profitability and employee welfare.
The education system should be improved to provide workers with the necessary skills and knowledge to increase their productivity and earning potential.

Limitations of the Study

This study has several limitations, including:

The study only analyzed three industrial sectors in Medan.
The study only considered three factors that affect wages, namely working hours, education, and experience.
The study did not consider other factors that may affect wages, such as job satisfaction and work-life balance.

Future Research Directions

Future research should consider the following directions:

Conducting a study on other industrial sectors in Medan to compare the results.
Considering other factors that may affect wages, such as job satisfaction and work-life balance.
Conducting a study on the impact of wages on employee welfare and productivity.

By considering these limitations and future research directions, this study provides a comprehensive analysis of employee welfare levels in several industrial companies in the city of Medan.
Frequently Asked Questions (FAQs) about Employee Welfare Levels in Industrial Companies in Medan

Q: What is the main purpose of this analysis?

A: The main purpose of this analysis is to examine the wages and welfare of workers in several industries in Medan, with a focus on identifying the factors that affect wages and their impact on employee welfare.

Q: What are the three industrial sectors analyzed in this study?

A: The three industrial sectors analyzed in this study are manufacturing industries that employ a minimum of one hundred workers, which are categorized as large industries according to the Central Statistics Agency.

Q: What are the three factors that affect wages in industrial companies in Medan?

A: The three factors that affect wages in industrial companies in Medan are working hours, education, and experience.

Q: How do working hours affect wages in industrial companies in Medan?

A: Working hours are the most dominant factor in determining wages received by workers in industrial companies in Medan. The more hours they work, usually the higher the wages they receive.

Q: How does education affect wages in industrial companies in Medan?

A: The level of education also has a significant effect on the level of wages in industrial companies in Medan. Workers who have higher education will usually get better wages compared to those who have a lower level of education.

Q: How does experience affect wages in industrial companies in Medan?

A: Work experience, despite having a smaller influence compared to working hours and education, remains an important factor in determining wages in industrial companies in Medan. Workers who have more experience tend to be more productive and can make a greater contribution to the company.

Q: What are the implications of this analysis for industrial companies in Medan?

A: The implications of this analysis for industrial companies in Medan are that they should pay attention to the working hours, education, and experience of their employees when determining wages. This will help to create a good balance between company profitability and employee welfare.

Q: What are the recommendations of this analysis for employees in industrial companies in Medan?

A: The recommendations of this analysis for employees in industrial companies in Medan are that they should consider their abilities and productivity when asking for an increase in wages. This will help to ensure that they receive fair compensation for their work.

Q: What are the limitations of this analysis?

A: The limitations of this analysis are that it only analyzed three industrial sectors in Medan, and it only considered three factors that affect wages, namely working hours, education, and experience.

Q: What are the future research directions for this analysis?

A: The future research directions for this analysis are to conduct a study on other industrial sectors in Medan to compare the results, to consider other factors that may affect wages, such as job satisfaction and work-life balance, and to conduct a study on the impact of wages on employee welfare and productivity.

Q: What are the benefits of this analysis for industrial companies in Medan?

A: The benefits of this analysis for industrial companies in Medan are that it provides a comprehensive understanding of the factors that affect wages and their impact on employee welfare, which can help to improve employee welfare and productivity, and ultimately contribute to the growth and development of the company.

Q: What are the benefits of this analysis for employees in industrial companies in Medan?

A: The benefits of this analysis for employees in industrial companies in Medan are that it provides a clear understanding of the factors that affect wages and their impact on employee welfare, which can help to ensure that they receive fair compensation for their work, and ultimately contribute to their overall well-being and job satisfaction.