Final answer:
In the new workforce, 'meritocracy' is another predominant buzzword alongside 'pay-for-performance.' It refers to a job market rewarding individual achievements and abilities, affected by economic forces like outsourcing, automation, and global demand for 'stars' in certain professions. These factors contribute to changing compensation dynamics and an increased focus on individual value and productivity.
Step-by-step explanation:
In addition to “pay-for-performance”, another predominant buzzword in the new workforce is “meritocracy”. This concept is becoming increasingly popular as it speaks to a job market structured around rewarding individual achievement and ability. The term encapsulates the idea that economic forces, outsourcing, automation, and abstract skills are driving the division of labor markets, pushing for either low-level, low-paying jobs or high-level, high-paying positions. Furthermore, notions like the “winner-take-all” labor market theory highlight the increasing salary disparities that are not simply tied to educational differences but to global demand for “stars” across various industries.
Moreover, the workforce and the level of unemployment significantly influence how much people will be paid. During times of high unemployment, workers may accept lower wages, which enables businesses to maintain or increase profits without raising workers' pay. Additionally, the modern workforce is described by the changing roles of women and immigrants, the increasing necessity of welfare and social security safety nets, and the rise of inequality even among the employed.
Ultimately, these dynamics contribute to a complex and evolving understanding of compensation in a capitalist economy. The economic forces at play, the role of social stratification, and the emerging patterns of employment challenge the traditional wage-setting practices and call for a new understanding of value and productivity in the workplace.