COMMERCE 2BC3 Chapter 8: 2BC3- chpt 8
9 Nov 2017
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Total compensation: some of everything we offer employees in return of labor, pay is the cash, benefits is everything not offered in cash but has value. Pay structure: the relative pay of different jobs (job structure) and how much they are paid (pay level) Pay level: average pay including wages, salaries, and bonuses, of jobs in the organization. Eg: organization a pay level is ,000, organization b pay level is ,000, organization c pay level is ,000. Job structure (relative pay) + pay level (overall pay: need both pieces of information to really understand pay policies of an organization. Total compensation as a percentage of sales: average 22% of sales, but varies across industries, higher % in labor-intensive industries, e. g. healthcare, education, service sector. External equity: compare what other in employees in organizations are paid for doing the same general job. Internal equity: compare with others within your organization are paid, but in different jobs.
