The wages that are paid to workers in the construction industry vary due to different factors. The factors that affect the determination of wages in the construction industry include performance of the workers, the ability of the workers to deliver high quality work, the demand for workers in the economy, and the supply of the workers in the economy (Finkel, 1997). These factors contribute highly in the determination of the wages that the company will pay its workers.
The performance of the workers in their areas of responsibility determines the level of wages that these workers are paid. Workers with high performance levels are valuable to the company and will be given high wages so as to encourage them to continue working for the company (Finkel, 1997). Low performance does not lead to increases in the level of wages. In fact low performance may make the company fire the workers.
The abilities of the workers in the construction industry determine the wages that they are paid. The workers that possess the ability to handle complex tasks are valuable to the company. The company will increase the wages of the highly skilled workers so as to maintain them. The company cannot afford to lose a highly skilled worker to its competitors (Finkel, 1997).
The demand for workers determines the wages that workers in the construction industry are paid. A high demand for workers will mean that the companies will offer high wages so as to attract workers (Finkel, 1997). Low demand for workers will lead to low wages because the company is not in great need of many workers.
The supply of workers determines the wages of workers in the construction industry. High supply of construction workers in the market leads to low wages because the company has a lot of workers at its disposal. Low supply of construction workers in the market leads to high wages due to high competition from other construction companies (Finkel, 1997).
References
Finkel, G. (1997). The Economics of the Construction Industry. New York: M. E. Sharpe Inc.
