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LER Exam 3Compensationo 89% of employees rated salary as being most important when deciding whether toaccept a job offero Salaries are usually negotiableTips1. When making a decision on a job offer, look at ENTIRE spectrum not just pay2. Don’t try to negotiate prior to an offer of employmentHow to evaluate compensation?o External equityo Internal equityo Individual equityExternal Equity – the degree to which employees are paid according to the value of the job on the external labor market, i.e. what other employers in the area paying for the same jobInternal Equity – the degree to which employees are rewarded according to the value of their job to the employerIndividual Equity – the degree to which employees doing similar work receive similar payExtrinsic Rewardso Direct Compensation o Base pay and variable pay o Examples: Commissions and bonuseso Indirect compensationo Benefits Health insurance Retirement (defined benefit, defined contribution) Life insurance Pay for time not worked (holidays and vacations)o Perks Fitness centers at work Child care at work Tuition reimbursementBenefitso Benefits can comprise 40%o Employers are increasingly shifting more responsibility to employees for choosing and financing more of their own benefits – particularly retirement plans and healthcare insuranceo 59% of singles are making benefits decisions on their own without consultation from financial planners or even their peers (a bad idea), and 34% of married employees are not consulting their spouse (a very, very bad idea)Defined Benefito Employee receives employer-guaranteed income stream upon retiremento Employer risk o Statico Employer controlled investments o Earlier retirement is the incentiveo Favored by older employeesDefined Contributiono Employee receives finite amount of money determined by contributions and investment performance (“buys what it buys”)o Employee risko Portableo Employee controlled investments (within parameters established by employer) o Leads to later retirementso Favored by younger workersPatient Protection and Affordable Care Act/”Obamacare”2010o A lawo No life time dollar limits on insurance coverageo Dependents covered up to age 26o No extra charge for preventative services such as colonoscopies or mammograms2013o Private insurance exchanges open: 35 states rely on federal exchange and 15 states and DC run their own; several levels of coverage available; premiums vary by location and individual’s age; # of available private insurance plans in each state varieso Government subsidies of premiums for income-qualified purchasers2014o No discrimination by gender for premium rateso No exclusion or premium rating for pre-existing conditionso No annual dollar limits on insurance coverageo Mandated coverage for individualso Medicaid eligibility expands in states that accept federal money to expand2015o Mandated insurance coverage by employers with 50 or more employeesBalancing Work and Familyo Until the 1960s, most women did not expect to have careers.o Beginning in the 1970s that began to change…o Resulting in a Dual Worker PhenomenonDual-Worker Marriageso 1939 – 10%o 1975 – 32%o 2000 – 53%o 2007 – 67%Causeso Feminism – a belief that there should be equality in all aspects of life between men and womeno Economic Necessity – today many families find that both partners must work to maintain their lifestyleDual Worker PhenomenonBenefits:o Couples have more in commono Both men and women enjoy higher self-esteemo More options for women to have fulfilling lifeo Children are more self-relianto Potential for more disposable incomeo Opportunity to upgrade lifestyleo Greater depth and breadth of life experienceCosts:o Stressful, hurried lifestyleo Constant child care worrieso Guilt and fatigueo Risk of careers overshadowing marriageo Career imbalanceo Children obliged to do more to help the familyo Marital strife caused by unequal distribution of personal responsibilities or financesSpillovero Stress experienced in one domain of life that results in stress in the other domain for the same individualPerception Gapo Women still do 66% of household work*Dual worker households face challenges that need to be recognized and addressed*Family-Friendly H.R. policies:o On site day careo Flextimeo Telecommutingo Lactation programs/facilitieso Family-friendly health careo Tuition assistanceo Paid parental/family leaveo Maternal/paternalo Eldercare*Most college students expect to have a dual worker lifestyle in the future, but typically underestimate the stresses involved in this*Research shows:o Women consider the implications for their families of work decisions to a greater degree than men doo Men tend to view work and family roles as independento Result: women are more likely to feel that they are choosing against the their spouse. Men are less likely to feel this wayThe Starting Point: At-Willo A sort of “default” rule. Here’s what the at-will rule says:o If an employment contract lacks a specified duration (it’s not for “6 months” or “2years”, etc., but instead indefinite), then the contract may be terminated by either the employer or employee for a good reason, a bad reason, or any reason at all, except to the extent that some specific law says otherwiseLabor and Employment LawTwo Categories1. Labor Law a. Creates “little government” – collective bargaining relationship where government makes their own laws2. Employment lawa. Typically “one size fits all”b. Very broadly statedc. Not tailoredo Labor Law: Creates CBA’so National Labor relations Act (NLRA)o Railway Labor Act Governs railroads and airlineso Act 111o Act 195 – general public employee law under stateo Protect non-union people who are taking small steps to become unionizedo Employment Lawo Apply to both union and non-uniono Fair Labor Standards Act (FLSA) 1938 Wages and hours National minimum wage Basically the law that establishes the 40 hour week Overtime at 1.5 x hourly wage over 40hrs Limits on child labor- No dangerous work under 18o Occupational Safety and Health Act (OSHA) Try to prevent accidents from happening in the first place Requires employers to provide safe work and a safe workplace “Right to come home at end of the day” Dangerous occupations: firefighting, fisheries, forestry (lumberjacks) People falling Things falling on people People dying from gas in confined spaces

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PSU LER 100 - Exam 3

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