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Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,*,The World of Pay and Compensation,Seventy percent(70%)of all jobs in the USA are in the service sector.,Service-sector jobs tend to be labor intense.,Service-sector companies typically spend 40 to 80 cents of each revenue dollar on employee compensation.,Wage competition in service-sector companies tends to be more intense.,1,The Compensation Program,Base Wages and Salaries,After-tax amount on the paycheck,Wage and Salary Add-,ons,Premiums an Differentials,Incentive Payments,Payment for specified outputs,Benefits and Services,Retirement,Savings,Medical,(39%of payroll),2,Reasons for the Differences in Pay and Compensation for Different Employees,Kinds and Levels of Required Skills,Kind of Business,Union and Nonunion Status,Capital Vs.Labor Intense Industries,Size of Business,Philosophy of Management,Total Compensation Package,Geographic Location,Factors That Determine Rates of Pay,3,Average Hourly Earnings November 1995Specified Production Workers,Eating and Drinking Places,Apparel and Accessory Stores,General Merchandise Stores,Apparel and Other Textile Products,Food Stores,Leather and Leather Products,Misc,.Retail Establishments,Amusement and Recreation,Building Materials and Garden,Textile Mill Products,$5.65,7.54,7.60,7.77,8.25,8.26,8.52,9.02,9.26,9.49,Lowest Paid,4,Average Hourly Earnings November 1995Specified Production Workers,PIPELINE except NATURAL GAS,PETROLEUM and COAL PRODUCTS,TOBACCO PRODUCTS,COAL MINING,ELECTRIC,GAS,and SANITARY SERVICES,METAL MINING,TRANSPORTATION EQUIPMENT,LEGAL SERVICES,COMMUNICATIONS,CHEMICAL and ALLIED PRODUCTS,$20.26,19.68,18.49,18.43,18.04,16.94,16.65,16.37,15.90,15.85,Highest Paid,Hourly Rates(1994)for Production Workers,Five Highest,1)Michigan$16.40,2)Ohio 14.53,3)Delaware 14.08,4)Indiana 13.90,5)Connecticut 13.82,Five Lowest,50)S.Dakota$9.51,49)Mississippi 9.90,48)S.Carolina 10.21,47)Arkansas 10.23,46)N.Carolina 10.67,6,Reasons For The Differences In Pay And Compensation For Different Employees,Supply and Demand of Labor,Profitability of the Firm,Employment Stability,Gender Difference,Employee Tenure and Performance,Other Factors That Determine Rates Of Pay,7,A World in Transition,More Intense Global Competition,Slower Growth,More Rapid Change,Reordering of Traditional Businesses,Organizational Restructuring,Deregulation,Takeovers,and Mergers,Wage Depression and Revenue Escalation,8,Global Variations In Compensation Practices,Direct Compensation,Tax System,Social Security,Benefit Entitlements,Regulatory Environment,Employment Law,9,
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