1) wage and price controls 2) unions 3) er impetus 4) cost effectiveness of benefits (tax reasons) 5) government 6) increase in medical costs (technological innovation)
health care cost control strategieslink incentives to health behavior
EX we will pay you more if you use the company gym
EX offering healthy behavior options: like a free company gym or giving free access to weight watchersexecutive pay-they get a lot of base pay
-they get annual incentives and bonuses
-they get long-term incentives which are increasing, like stock options that vest in the future (short-term options are decreasing)how do people feel, in general, about CEO pay levels and pay ratios?majority of people think CEOs are paid too high and that the pay ratios are too bigwhy does scientists pay often level off?Maturity curve: they come out of school with the knowledge and cutting edge tech then over time, this tech and knowledge becomes obsolete
-salary grows less fast if they stay in the expert field.
-Result: dual career ladder (providing two ways of progressing, either managerial or professional track)Why is there a decline in union membership?1)changing structure of the US
2)more service oriented workforce
3)more labor overseas
4)less intensity for organizing efforts - ees don't view this as fixing their issuesimpact of unions in wage determination-general wage and benefit levels (union ees paid better)
-structure of wages (less PFP, more flat wages)
-impact nonunion firms = spillover effect (Starbucks)
-wage and salary policies and practices in unionized firmswage and merit differentialswage: usually people make more $ in unions
-merit matters less, so it goes downunion impact on benefitsbig impact! more on benefits than on wages and salary (push for benefits, time off, and other)union impact on disciplinea lot harder to fire people who are in a unionunions and variable payunions usually don't like variable pay HOWEVER starting to do it a bit more because of international pressure
-objective ratings: don't want to be individualized for fear from managementJapanese traditional pay system-care about security within company (lifetime career)
-seniority based pay systems (national culture)
-unionized - centralized within a company
-long hard hours, treated well, not the most efficient
-gift giving culture translates to bonuses being important (based on giving a gift/reward, not on performance)German traditional pay system-based on pay for performance
-business and government work cooperatively
-efficiency is important, less hours but harder working
-good benefits, higher taxes, more vacations
-focuses less on bonuses
-"the nanny state" = good benefits like health care and social securitypaternity and maternity leaveno mandatory maternity/paternity leave in the US (some states have it though)equal pay act1963 act: says men and women should be paid the same if the have essentially the same jobmandatory retirement ageno general mandatory retirement age in US (illegal for most companies)
-does exist for some safety jobs (EX air traffic control, pilots, military)waitress/waiter wagesin some states pay can be lower than minimum wage as long as tips make up the difference due to "tip credit"
- in WA, tip credits are not allowed and minimum wage for waitresses/waiters is the same as the state minimum wageindependent contractors-usually don't have access to unemployment insurance and many benefits (EX health insurance)
-have to pay both parts (er and ee) of social security tax)
-ers like the flexibility, but it often hurts the workers
-ee/IC decisions center around the idea of control (where/when they work, what equipment they have)
-the IRS monitors classification decisions by ersminimum wage-federal min wage: $7.25/hr (hasn't changed since 2009)
-WA min wage: $15/hr (tied to inflation)overtime and exempt eesat least 1.5 times normal wages over 40 hrs/week
-some ees are exempt (executives, managers, professionals)Family and Medical Leave Act (FMLA)ees can take up to 12 weeks unpaid leave due to medical condition or to help take care of a spouse, parent, or child (more if person you're caring for is a veteran)
-the company can require you to take sick days, vacation days, and/or PTO before this act kicks in
-only applies to companies with 50+ ees
-only applies to workers who work a certain amount of hours
