LER Exam 3 Compensation Tips o 89 of employees rated salary as being most important when deciding whether to accept a job offer o Salaries are usually negotiable 1 When making a decision on a job offer look at ENTIRE spectrum not just pay 2 Don t try to negotiate prior to an offer of employment How to evaluate compensation o External equity o Internal equity o Individual equity External 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 job Internal Equity the degree to which employees are rewarded according to the value of their job to the employer Individual Equity the degree to which employees doing similar work receive similar pay Extrinsic Rewards o Direct Compensation o Base pay and variable pay o Examples Commissions and bonuses o Indirect compensation o Benefits o Perks Fitness centers at work Child care at work Tuition reimbursement Benefits o Benefits can comprise 40 Health insurance Retirement defined benefit defined contribution Life insurance Pay for time not worked holidays and vacations o Employers are increasingly shifting more responsibility to employees for choosing and financing more of their own benefits particularly retirement plans and healthcare insurance o 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 Benefit o Employee receives employer guaranteed income stream upon retirement o Employer risk o Static o Employer controlled investments o Earlier retirement is the incentive o Favored by older employees Defined Contribution o Employee receives finite amount of money determined by contributions and investment performance buys what it buys o Employee risk o Portable o Employee controlled investments within parameters established by employer o Leads to later retirements o Favored by younger workers Patient Protection and Affordable Care Act Obamacare 2010 o A law o No life time dollar limits on insurance coverage o Dependents covered up to age 26 o No extra charge for preventative services such as colonoscopies or mammograms o 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 varies o Government subsidies of premiums for income qualified purchasers o No discrimination by gender for premium rates o No exclusion or premium rating for pre existing conditions o No annual dollar limits on insurance coverage o Mandated coverage for individuals o Medicaid eligibility expands in states that accept federal money to expand 2013 2014 2015 o Mandated insurance coverage by employers with 50 or more employees Balancing Work and Family o 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 Phenomenon Dual Worker Marriages o 1939 10 o 1975 32 o 2000 53 o 2007 67 Causes men and women maintain their lifestyle Dual Worker Phenomenon Benefits o Feminism a belief that there should be equality in all aspects of life between o Economic Necessity today many families find that both partners must work to o Couples have more in common o Both men and women enjoy higher self esteem o More options for women to have fulfilling life o Children are more self reliant o Potential for more disposable income o Opportunity to upgrade lifestyle o Greater depth and breadth of life experience Costs o Stressful hurried lifestyle o Constant child care worries o Guilt and fatigue o Risk of careers overshadowing marriage o Career imbalance o Children obliged to do more to help the family o Marital strife caused by unequal distribution of personal responsibilities or finances Spillover o Stress experienced in one domain of life that results in stress in the other domain for the same individual Perception Gap o 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 care o Flextime o Telecommuting o Lactation programs facilities o Family friendly health care o Tuition assistance o Paid parental family leave o Maternal paternal o Eldercare Most college students expect to have a dual worker lifestyle in the future but typically underestimate the stresses involved in this Research shows degree than men do o Women consider the implications for their families of work decisions to a greater o Men tend to view work and family roles as independent o Result women are more likely to feel that they are choosing against the their spouse Men are less likely to feel this way The Starting Point At Will o 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 2 years 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 otherwise a Creates little government collective bargaining relationship where Labor and Employment Law Two Categories 1 Labor Law government makes their own laws 2 Employment law a Typically one size fits all b Very broadly stated c Not tailored o Labor Law Creates CBA s o National Labor relations Act NLRA o Railway Labor Act Governs railroads and airlines o Act 111 o Act 195 general public employee law under state o Protect non union people who are taking small steps to become unionized o Employment Law o Apply to both union and non union o 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 18 o 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 Dangerous occupations firefighting fisheries forestry Right to come home at end of the day lumberjacks People falling Things falling on people People dying from gas in confined spaces Asbestos o Workers Compensation Oldest law Replaced an old system Old system if you got hurt killed family would go to court to prove it was