indirect compensation

Benefits services perks

Direct Compensation

base pay Merit incentives add- on seniority skill/knowledge Cost of living Adjustment (COLA)

Equity Theory

a theory that states that people will be motivated when they perceive that they are being treated fairly

Internal Equity

Situation in which employees feel that performance or job differences result in corresponding differences in rewards that are fair.

Job ranking

Job evaluation method that involves establishing a hierarchy of jobs from lowest to highest based on each job's overall value to the organization.

Job Classification

Job evaluation method in which descriptions are written for each class of jobs; individual jobs are then put into the grade that best matches their class description.

Point-factor method

Most commonly used method of job evaluation; it involves using specific factors such as skills, responsibilities, effort, working conditions, supervision of others to evaluate job worth + best for orgs with resources + produce defensible outcomes - complex and time consuming - hard to explain

external equity

Extent to which pay for a job is competitive and fair relative to pay of the same or similar jobs at other organizations.

Salary Surveys

A questionnaire sent to other organizations to see how much they are paying their employees in positions similar to those in the organization sending the survey

Match Policy

Organization pay policy is to set pay structures and targets pay levels to match the market rate

Lag Policy

Organization intentionally sets pay structures and targets pay levels below the market rate

Lead Policy

Organization intentionally sets pay structures and targets pay levels above the market rate

pay grade

Group of jobs with similar job evaluation point values that are then assigned common pay midpoint, minimum, and maximum values.

Individual Equity

The fairness of how pay is administered and distributed to individual employees working similar jobs within the same organization. higher when high- performing, senior, and experienced employees are compensated at higher rate

Civil rights act of 1964

forbids discrimination based on sex, race, color, national origin, or religion.

Lilly Ledbetter Fair Pay Act

U.S. act that creates a rolling time frame for filing wage discrimination claims and expands plaintiff field beyond employee who was discriminated against.

Fair Pay Act

restored worker protections against unlawful compensation, and also changed the Statute of Limitations concerning unlawful compensation

Fair Labor Standards Act (FLSA)

Federal law that establishes a minimum wage and requirements for overtime pay and child labor

equal pay act

1963 law that required both men and women to receive equal pay for equal work

Benefits

Employee rewards, which are a type of indirect pay.

Mandatory Benefits

social security workers compensation unemployment insurance family and medical leave health insurance

Purpose of social security

Retirement Disability Survivors and family Health insurance (Medicare)

who pays for these benefits

Federal Insurance Contributions Act or FICA

Workers’ Compensation: who pays for it

Program funded entirely by the employer. All states mandate that employers offer programs to employees.

Workers’ Compensation

No fault insurance for job- related injuries, illnesses, disabilities and death

Health Insurance (Medicare)

Types of coverage Part A: Hospital insurance Part B: Medical insurance Part C: Medicare advantage plans Part D: Prescription drug coverage

Family Benefits

Eligibility Who is covered Spouse over 62 Spouse caring for child or grandchild under 16 Former spouse over 62 Children or grandchildren under 18

Survivors Benefits

Eligibility Who is covered Widow/widower over 60 Widow/widower caring for child or grandchild under 16 Former spouse over 60 Children or grandchildren under 18 Parents over 62 Death benefi

Unemployment Insurance

Provides income replacement and job- search services to individuals unemployed through no fault of their own yet are still able to work and available for work. is funded through payroll taxes contributed by employers and is overseen and administered by the U.S. Department of Labor.

Family and medical leave act of 1993

Up to 12 weeks unpaid leave during any 12-month period Companies covered Eligibility Exceptions Returning to work Usage

U.S. Family and Medical Leave Act

Protects employees’ job security when they take unpaid leave due to certain family or medical issues

Patient Protection and the Affordable Care Act

increasing Access to Affordable Health Care employer mandate: provide affordable and comprehensive health insurance Dependents can stay on their parents’ plan longer Protecting Consumers No exclusions for preexisting conditions No lifetime or annual limits Improving Quality Financial incentives to hospitals and doctors to improve quality of care Lowering Costs Tax credits for small businesses and middle class Free preventive services Limits insurance companies’ administrative costs and profits

On average benefits make up _______% of total compensation.

31.3%

Which of the following is the most commonly offered benefit by organizations? A. Health insurance B. Retirement C. Paid leave D. Life insurance

Paid Leave

Which of the following is NOT an advantage of providing benefits to employees? A. They attract and retain employees B. They motivate employee performance C. They protect employees and their families from financial risks due to illness, disability, or unemployment D. Companies can attain many benefits cheaper than individuals

B. They motivate employee performance

Employees born in 1960 or later can collect their full retirement benefits through social security at _____ years.

67

Under Social Security, the Disability trust fund is expected to be depleted in the year ______, Medicare trust fund is expected to be depleted in the year _______, and the retirement trust fund is expected to be depleted in ________.

2099, 2033,2033

How many 20 years old workers can expect to become disabled before reaching retirement age? A. 1 out of 4 B. 3 out of 10 C. 1 out of 10 D. 1 out of 50

A. 1 in 4

Unemployment Insurance is designed to replace about ______% of your previous pay

60

Under the Family and Medical Leave Act, which of the following would entitle you to unpaid leave? A. Caring for a disabled parent B. Foster care of a child C. Your own serious illness D. Your spouse is called to active duty as a member of the National Guard E. All of the above

E. all of the above

In the US, employees get on average ______ days of paid vacation per year, while employees in France get ______days

11, 42

In 2024, the average cost for health insurance coverage per employee was A. $2,900 B. $8,951 C. $9,896 D. $14,563

b. 8,951

About ______% of employees help take care of an elderly family member, relative, or friend.

21

Colorado’s Family and Medical Leave Insurance (FAMLI)

12 weeks of paid leave Eligible once you earn $2500 over the past year Partial wage replacement up to $1324/week Employees and companies with 10+ employees each pay .45% of earnings

Life Insurance Programs

Provide financial compensation for designated beneficiaries when the insured individual dies, which can be distributed in the form of a lump-sum payment. Benefit is paid out as a fixed multiple of employees’ respective annual earnings and the remainder are enrolled in plans in which the benefit is paid out as a flat dollar amount.

Disability Insurance Programs

Short-term is a form of income protection for employees who temporarily become unable to work as a result of an illness or injury. Long-term offers longer-term benefits that activate once short-term disability insurance benefits expire.

Wellness programs

refer to a wide array of employer-sponsored initiatives aimed at promoting healthy behaviors

Paid Time Off (PTO)

When an employer compensates employees for time away from work, subject to employer approval.

sick time

When an employee takes time off from work due to a foreseen or unforeseen personal health issue or an immediate family member’s health issue, it is referred to as sick time or sick leave.

Holiday pay

When employees take time off from work on a recognized federal, state, or local holiday, employers use holiday pay to compensate workers

Consolidated Omnibus Budget Reconciliation Act

keep their employer-sponsored health insurance temporarily after losing it due to specific situations.

Types of OSHA Citations

Serious: Hazard could cause death or serious harm Other-than-serious: Related to safety but unlikely to cause serious harm Willful: Employer knowingly violated the law Repeated: Same or similar violation previously cited Failure to abate: Not correcting a previous violation

OSHA Priorities

prioritizes the most dangerous workplaces and situations, including imminent dangers, severe injuries or fatalities, worker complaints, referrals, and high-hazard industries

The MOST common cause of work fatalities in 2023 was A. Transportation incidents B. Falls, slips, and trips C. Exposure to harmful substances or environments D. Violence acts E. Contact with objects and equipment F. Fires and explosions

A. Transportation incidents

Which of the following occupations had the MOST fatalities in 2023? A. Extraction B. Farming, fishing, and forestry C. Management D. Production E. Protective services

C. Management

In 2023, women were more likely than men to die at work due to A. Falls, slips, and trips B. Fires and explosions C. Roadway incidents D. Homicides

D. Homicides

How many work-related fatalities were there in Colorado in 2023? A. 43 B. 83 C. 167 D. 206

B. 83

Which retail setting had the MOST injuries in 2023? A. Gasoline stations B. Building material and garden equipment and supplies dealers C. Food and beverage stores D. Motor vehicle and parts dealers

C. Food and beverage stores

6. Which of the following was the MOST common workplace illness in 2023? A. Skin diseases or disorders B. Respiratory conditions C. Poisoning D. Hearing loss

B. Respiratory conditions

7. Which industry had the MOST work-related illnesses in 2023? A. Cattle ranching and farming B. Forestry and logging C. Coal mining D. Sawmills E. Industrial machinery manufacturing

A. Cattle ranching and farming

Union (Labor Union)

An organized group of employees who work together to negotiate wages, benefits, working conditions, and other employment terms with their employer.

Purpose of Unions

To protect worker rights, improve wages and benefits, ensure safe working conditions, and give employees a collective voice in the workplace.

Pros of Unions

Higher wages, better benefits, increased job security, safer working conditions, and formal grievance procedures.

Cons of Unions

Union dues, potential for strikes, less flexibility for employers and employees, and possible adversarial relationships with management.

Why Employees Join Unions

To gain better pay, job security, fair treatment, improved benefits, and protection from unfair management practices

The percent of the workforce that is unionized is A. 6.2% B. 9.9% C. 21.6% D. 52.4%

b. 9.9%

he percent of the workforce in Colorado that is unionized is ______.

7.7%

The occupation with the highest rate of unionization is A. Production B. Construction and extraction C. Protective services D. Education, training, and library

D. Education, training, and library

True or False: Many countries have more unionized employees than the U. S.

True

5. A yellow dog contract A. Prohibits workers from striking against their employer B. Is a list of union sympathizers that companies share and avoid hiring from C. Forbids employees from joining a union D. Makes union dues mandatory

C. Forbids employees from joining a union

The first industry to get the right to organize was A. Airline B. Coal mining C. Farming D. Railroad

D. Railroad

True or False: Managers can help run the union.

False

In 1946 there were ________ strikes while in 2024 there were ________ strike

4,985, 356

True or False: In Colorado you could be required to join a union.

True

The union known for its history of corruption is A. United Auto Workers B. International Brotherhood of Teamsters C. Association of Flight Attendants D. American Postal Workers Union

B. International Brotherhood of Teamsters

Non-unionized full-time employees earn _______ per week while union members earn ________ in the private sector.

1138. 1337

Which demographic group has the highest rate of union membership? A. Black men B. Black women C. White men D. White women E. Hispanic men F. Hispanic women G. Asian women H. Asian men

A. Black Men

If you join your colleagues for dinner, you may be expected to sing at a karaoke establishment. ____________________

south korea

2. You are expected to apologize for your lack of fluency before engaging in further conservation. ____________________

france

3. Serious, direct, blunt communication is respected in business dealings. ____________________

germany

4. Being on time to a business meeting is important for Americans. However, they may show up as late as they desire and may be unapologetic about it

russia

You better have a gift ready when you show up for a business meeting. However, don’t expect it to be eagerly accepted. It is customary to refuse gifts up to three times before accepting. ____________________

china

6. Business cards are held in very high regard and you need to come to business meetings with them. Pass and receive them with both hands and do not write on them. ____________________

Japan

7. You can expect a complete invasion of personal space and backing away is considered disrespectful. ____________________

Brazil

8. The left hand is considered unclean and used strictly for bodily hygiene. It is important to eat, shake hands, and pass documents with the right hand only. ____________________

united arab eminites

10. Deadlines are viewed more as a guideline and not something that is frowned upon if missed. Schedule potential delays into any timelines. ____________________

india

11. You may be asked to hold a business meeting in a sauna. Do not decline, as it is considered a sign of hospitality and that the meeting is headed in a positive direction. ____________________

spain

12. Business professionals greet each other with three air kisses once a relationship has been established. ____________________

finland

13. Tapping the nose indicates that what is about to be discussed is private and confidential. ____________________

Belgium united Kingdom

Your company is concerned about internal equity. Which of the following should you use to address this issue? A. Equity theory B. Job evaluation C. Wage surveys D. Performance philosophy

B. Job evaluation

lacing employees higher or lower within a pay grade can be used to recognize which type of equity? A. Individual equity B. Internal equity C. External equity D. Performance equity

A. Individual equity

Which of the following is TRUE about social security? A. To be eligible for disability benefits you must have earned 40 work credits B. Your extended family (aunts, uncles, cousins, grandparents) can collect survivors’ benefits should you die C. Medicare covers all medical expenses including prescription medications at no cost D. You can collect retirement benefits early at 62

D. You can collect retirement benefits early at 62

You want to reduce turnover at your company. Which of the following should you use? A. Graduated vesting B. Term life insurance C. Short-term disability insurance D. Cliff vesting

D. Cliff vesting

Which of the following agencies trains OSHA inspectors? A. Occupational Safety and Health Administration B. National Institute of Occupational Safety and Health C. Occupational Safety and Health Review Commission D. National Labor Relations Board

B. National Institute of Occupational Safety and Health

Which of the following personality traits is NOT related to increased accidents? A. Extraversion B. Risk taking C. Low agreeableness D. Low conscientiousness

C. Low agreeableness

For which of the following could employees be fired for engaging in? A. Sympathy strike B. Picketing C. Unfair labor practice strike D. Economic strike

A. Sympathy strike

Which of the following is legal in Colorado? A. Yellow dog contract B. Closed shop C. Slowdown D. Agency shop

D. Agency shop

Pay transparency would work best in which culture? A. Individualistic B. Masculine C. Restraint D. Low power distance

D. Low power distance

10. Which benefit would cultures with a long-term orientation value? A. Paid time off B. Catered lunch C. Retirement plan D. Team bonding activities

C. Retirement plan