Should an employer place more emphasis on direct pay

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What role do employee benefits play in an organization’s total compensation plan? Should an employer place more emphasis on direct pay and less on indirect (benefits)? Why or why not? Total compensation constitutes of two types of the rewards which are direct rewards and indirect rewards. Direct Direct rewards include the salaries wages, commission, bonuses and gain sharing all of these rewards are directly paid to employees in monetary or financial terms, second type of the rewards that are indirect also known as benefits provided by organization. Currently businesses should emphasis indirect benefits. Benefits are not direct payments in financial terms. Benefits are all financial rewards that generally are not paid directly to an employee. Benefits absorb social costs for health care and retirement and can influence employee decisions about employers. Due to the rising cost in healthcare; many organizations recognize that they have a responsibility to provide their employees with insurance and other programs for their health, safety, security, and general welfare. These benefits include all financial rewards that generally are not paid directly to the employee. Second Message: First Message 2: $15 minimum wage? $15 minimum wage Based on your readings in the textbooks and other sources, discuss the pros and cons of a $15/hour minimum wage.
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What might be the impact of a $15/hour wage on internal and external equity? What other factors of the compensation system might be affected by a minimum wage of $15? The benefits of $15 minimum wage base would reduce poverty. Having a direct effect on government welfare spending. Government expenses for social programs aimed at the poor would potentially be reduced. Increasing the minimum wage would reduce poverty. Minimum wage increase can lead to a reduction to income inequality. Raising the minimum wage would increase economic activity and job growth. The impact minimum wage increase would have a ripple effect, raising the incomes of people who make slightly above the minimum wage. The current minimum wage is not high enough to allow people to afford housing. Increasing the minimum wage would increase worker productivity and reduce employee turnover.
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  • Spring '14
  • Salary, Employment compensation, external equity

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