MGT 3320 Study Guide - Final Guide: National Education Association, Economic System, Service Employees International Union
Document Summary
Compensation & benefits: how employees are compensated can take many forms, compensation/benefits, on average, benefits make up approximately 30% of the entire compensation package, benefits = the hidden paycheck . Benefits are unique: how are benefits different from traditional compensation, more regulation of benefits than direct pay, almost obligatory for employees to provide, complex for employees to understand. Growth of employee benefits: benefits as percentage of total compensation, 1929 3, 1955 15, 1975 23, 2011 30, reasons for benefits growth. The great depression: during and after the great depression, several laws mandating benefits were passed, the new deal, ex: social security act, help employees meet security needs. World war ii: wage and price controls. Labor market shortages: what are other ways to attract and retain employees, benefits weren"t covered by wage controls, after the war, these benefits remained. Tax treatment: for both employees and employers, tax treatment of benefits is more favorable than tax treatment of wages and salaries.
